KiwiSaver is an easy and affordable way for Kiwis to save and invest for their long-term goals. While it is a voluntary savings scheme, and not mandatory, investing in your future financial well-being is always a smart move, and one day, you’ll thank yourself for your efforts. Employees in New Zealand can choose to contribute 3%, 4%, 6%, 8% or 10% of your income before tax. This contribution is automatically transferred to your KiwiSaver account each time you get paid, which makes it easy to save. There are limited instances in which you can access and withdraw your KiwiSaver funds. After all, this scheme is designed to benefit you in the long term.
There are many benefits to investing in KiwiSaver.
1. Employer Contributions
If you are employed, your employer must contribute at least 3% of your gross income into your KiwiSaver. This is on top of your own contributions, which means that your KiwiSaver savings can add up quickly.
2. Government Contributions
You can also enjoy the government contribution, which is an annual contribution of up to $521 into your KiwiSaver account. To receive this benefit, you must be 18 or over and contributing to your KiwiSaver as well.
3. KiwiSaver for Retirement
KiwiSaver is designed as an investment for our retirement years. This means that when you reach the New Zealand Superannuation age, which is 65 currently, you can access your KiwiSaver funds. You can withdraw the funds by regular fortnightly or monthly payments, a partial withdrawal, with by withdrawing the full balance. You may want to withdraw regular payments as you need the funds so that you can continue to enjoy the returns of investment into your golden years.
4. KiwiSaver for First Home Buyers
If you are in the process of buying your first home, you may be eligible to make a one-time withdrawal of your KiwiSaver funds to put towards your deposit. You must meet eligibility, including contributing to your KiwiSaver for at least three years. In certain instances, you may qualify for a second-chance withdrawal if you have owned property previously.
Get a Kiwisaver Health Check
Our friends at National Capital can help you with a Kiwisaver health check, to make sure your Kiwisaver is set up in a way that will help you meet your financial goals.
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