Regular Savings

Traditionally New Zealanders have not been good at organizing savings and in particular putting money aside for retirement.  We assist many clients with regular savings plans who are building up a nest egg for later in life.
For many people looking at longer term retirement plans, KiwiSaver is now the most appropriate vehicle due to incentives provided by the Government. However, KiwiSaver does have some limitations, therefore many of our clients use our investment portfolio system which can receive regular or lump sum payments.

KiwiSaver

KiwiSaver has been designed to encourage people to save for their retirement and we are able to help you work through your options and assist you in making the best choice whether you are an employer, employee or self-employed. We have access to a wide number of providers and can help you with your investment strategy depending upon the level of risk you wish to take.

What is KiwiSaver?

  • A voluntary, work-based savings initiative and contributions are either 2%, 4% or 8% (you choose) of an employee’s gross salary.
  • Accumulating money is locked in until entitlement to New Zealand Superannuation – currently age 65, or five years after the first contribution, whichever happens last.  Access to funds is permitted in special circumstances - hardship, serious illness, or permanent emigration.
  • Savers can take a contribution holiday for up to five years after they have contributed to KiwiSaver for 12 months.

Government Incentives

  • $1,000 tax-free kick start contribution
  • Member tax credit (up to $1,040 annually)
  • Tax relief on employer contributions (up to 2% of salary)

Features for Members

  • From 1 July 2007 all new employees aged 18-64 are automatically enrolled in KiwiSaver and have 8 weeks to opt out.
  • Other existing employees or those self-employed, under 65 years, can choose to be included.
  • From 1 April 2009 the employers rate was set at 2% of the member's gross pay.
  • Employees can make one-off lump sum contributions.
  • After a minimum of three years of membership savers can withdraw part or all of their contributions to buy their first home (excluding the $1,000 kick-start and member tax credits).  There is also available a first home deposit subsidy. For more information regarding the subsidy and eligibility for the subsidy please visit the Housing New Zealand website www.hnzc.govt.nz)
  • Savers can divert half of their contributions to their mortgage after they have been saving for 12 months (if this option is offered by their KiwiSaver provider).
  • Children under 18 can join KiwiSaver and receive the $1000 kick-start and annual fees subsidy but not the member tax credit.
  • KiwiSaver comes under the PIE tax regime. This means you only pay tax at your marginal rate, and at no more than 30% for those on higher tax rates.

The information on this webpage is of a general nature only and is believed to be accurate as of June 2010. For further information please go to http://www.kiwisaver.govt.nz