KiwiSaver is about securing a better future. Whether it is to save a deposit for a house or for your ultimate retirement, you can generally save more in KiwiSaver than in alternative investment products. If you are not an employee (e.g. self-employed, a beneficiary, a stay-home parent, etc) saving $1,043 a year ($87 a month) maximises the government’s benefits you can save less. If you are not an employee, you do not need to save at all.
Example: save $1,043 a year
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After 1 year, the position is: |
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| Your savings | $1,043 | i.e. $86.92 a month | ||
| Government's MTC tax credit | + $ 521 | $1 for $2 up to $521 for a full year | ||
| Investment earnings | + $ 25 | (Say 5% after-tax) | ||
| Fees | - $ 30 | |||
| $1,559 | ||||
After 5 years', the postition is:
* If you are not an employee, you can choose how much you save. If you become an employee, you must save 3% of your total before tax salary until you have been in KiwiSaver for at least 1 year. After 1 year you can go on a contribution holiday.
