 KiwiSaver is a voluntary savings scheme introduced in July 2007. It is open to all New Zealand citizens between the ages of 18 and 65.
Your savings are “locked in” until you reach the age of 65, or for five years, whichever is later. However, there are exceptions – withdrawals can be made for such circumstances as significant financial hardship, serious illness or death or permanent emigration.
Employees
Your employer will provide you with an information pack when you begin your new employment. This pack will contain all the details you will need about enrolling in the scheme, how much to contribute, how the money is collected and where it is invested etc.
You have the option of opting out of the scheme if you do not wish to participate. KiwiSaver is not compulsory.
There are some benefits available to employees to encourage them to join the scheme. These include a $1,000 tax-free kick start. Also, KiwiSaver members who have been contributing for three years can make a one-off withdrawal towards a deposit on their first home.
Self-Employed People
KiwiSaver is not only for employees, self-employed people can join the scheme as well. You will need to decide which scheme provider to use and then contact the provider directly for an information pack and copy of their investment statement.
A list of all the scheme providers is available on the KiwiSaver website.
Also, the benefits mentioned above which are available to employees are also available to self-employed people who join the scheme.
For more information on the KiwiSaver scheme including how to join, scheme providers available, forms you can download and contact details please visit the Kiwisaver website – www.kiwisaver.govt.nz |
