KiwiSaver offers you benefits no other investment can.
When you join a KiwiSaver scheme you will receive:
3% contribution from your employer. If you are contributing to a Kiwisaver scheme from your salary or wages, your employer is required to put in a minimum of 3% of your Before Tax Pay (less employer’s superannuation contribution tax), if you are 18 or over.
Member Tax Credits of up to $521.43 every year. For every $1 you put in to your KiwiSaver account from 1 July to the following 30 June, the Government will put in a 50 cents up to a maximum of $521.43 per year, if you are 18 or over. This is called a Member Tax Credit.
First home withdrawal. If you have never owned a home, and you have been a KiwiSaver member for at least three years, you can take out all of the money both you and your employer have put in, as well as all of the investment returns, to help buy your first home.
Up to $10,000 first home subsidy. On top of the first home withdrawal, if you are eligible, you may also receive up to $10,000 as a subsidy from the Government towards your first home.
Your money is held in trust. Whether you are with a big Aussie bank or a New Zealand owned KiwiSaver specialist, the KiwiSaver Act requires your investments to be held by a Licensed Trustee and not the scheme provider. This means you can focus on selecting the fund that is right for you knowing your investments are being held and supervised by an independent trustee.
The earlier you start saving, the better off you will be. Because this allows you to take more advantage of compounding investment returns and generous Government incentives.
Even small increases in returns can have a big impact on your retirement. Your KiwiSaver account balance has two ways of growing: 1. By the amount of money you, your employer and the Government put in; 2.The returns you earn on your investments. The higher the return you earn on your investments, the bigger your savings at retirement.