View Poll Results: Have you signed up for Kiwisaver?

Voters
35. You may not vote on this poll
  • Yes - free money

    13 37.14%
  • No - I don't know enough about it yet

    7 20.00%
  • No - it's not worth it for me

    13 37.14%
  • I have a drawer in the fridge for that

    2 5.71%
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Thread: Kiwisaver - are you signing up?

  1. #1
    Join Date
    Nov 2006
    Posts
    312

    Default Kiwisaver - are you signing up?

    I've been too busy (lazy?) to look into Kiwisaver to fully understand the ins and outs. I've had passing thoughts about buying a short book about it, but my pursuits ended there.

    Sounds like free money if you're employed here in NZ, but what about for those of us that are self-employed? Or working for an overseas company? Are you going to sign up?

  2. #2
    Join Date
    Jan 2007
    Location
    Waiheke Island - Auckland
    Posts
    266

    Default

    if u have kids its worth signing them up. as its free money and for a 5 yr old theyl have 15-20k by the time theyre 18 just on the money the govt put in initially.......

    went to a seminar at work on it and am still debating it. depends on clarification of home buyer scheme and income levels..as its not all as it seems...

  3. #3
    Join Date
    Feb 2005
    Location
    Eastern Auckland (from UK '05)
    Posts
    3,182

    Default

    Andrew/Jane, who did you open your kids kiwisaver with? (if you have already signed them up)

  4. #4
    Join Date
    Oct 2004
    Location
    Tauranga
    Posts
    932

    Default

    Quote Originally Posted by andrewandjane View Post
    depends on clarification .................................as its not all as it seems...
    At the moment, for me its still a BIG 'NO' due to the above.
    Theres still quite abit they have to sort out it seems !!!!!!!!!!!!!!

  5. #5

    Default

    I've studied the Kiwisaver scheme and I think it's great.

  6. #6
    Join Date
    Oct 2004
    Location
    IOM-Swindon-Wellington (yay!)
    Posts
    362

    Default

    I think its just a way for the goverment to make money by luring the Kiwi in with what appears to be "free money". There are many caveats which need investigating further, and from my research no-one really seems to know the ins and outs of it as different financial advisers give different levels of opinion on it. I can't say advice because all I've had are opinions.

    I'm staying well clear of it until at least the next election and then see what changes they make to it.

    Debby & Keith

  7. #7
    Join Date
    Nov 2006
    Posts
    312

    Default

    Article in Herald today is what reminded me about Kiwisaver.

    From http://www.nzherald.co.nz/section/3/...ectid=10452352

    Dr Morgan, of Gareth Morgan KiwiSaver, said in a statement that too many providers continue the old savings and insurance trick of identifying only fees and telling savers in small print that expenses will be "charged to the scheme".
    .....
    Dr Morgan, who is against the KiwiSaver concept despite being a provider ....
    ...
    "So, the public have no idea how far most schemes can increase their fees."

    Mr Gawith said an issue that would come up later would be fund providers charging members the same percentage fees whether the investor had a large sum or a small one. It virtually cost the same to service both but the one with the large sum invested would pay, say, $1000 a year and the small investor $100.

    "I think it's going to be a future issue."

  8. #8
    Join Date
    Sep 2005
    Location
    QLD(NZ-Greenhills-E Linc-UK)
    Posts
    1,515

    Default

    Most independant financial advisers have told us we would be better off putting the 4% or 8% to paying the mortgage off, if you work part time, then the £1,000 for free is better than say your collegue who works 40 hrs and gets the same. Or if your nearing retirement age, or you have not bought a house yet.

    But I don't like that they can't guarantee that you will not loose your money...I would rather pay off my mortgage quicker as the figures show that what I would save in interest is more than what I would save with Kiwisaver.

    Plus I can safely put my money in a Bank account and earn a reasonable amount of interest with the guarantee of getting a profit and access to my money in an emergancy.

    I am NOT a money expert - so check out this website to help you decide
    http://www.sorted.org.nz/calculators/kiwisaver

    Kat

  9. #9
    Join Date
    May 2006
    Location
    North Shore
    Posts
    171

    Default

    Quote Originally Posted by katandbob View Post
    But I don't like that they can't guarantee that you will not loose your money
    This is not entirely true. When signing up to KiwiSaver everyone gets 3 months to decide: -
    a) which company/provider they would like to use to invest their money
    b) which type of investment plan offered by that company/provider

    If after signing up, you don't make a choice within 3 months, the IRD will assign you to one of the six default providers, who will in turn place you into their most risk averse investment plan (most likely a bank account earning a standard interest rate).

    What Kat is refering to is the scenario when people want the greatest return on their investment and they choose plans with greater risks associated with them i.e. investment in stock markets. This is the same as investment outside of KiwiSaver - if you want to go for the big money, you must also be prepared to lose money.

    My own 2 cents worth (bearing in mind I'm not a Financial Advisor) - if you can afford to save at least the minimum (and this may increase in the future), and guarantee you'll still be in NZ when you retire and know you'll never need to call on those savings prior to retirement age, then KiwiSaver is absolutely great - start counting the free money from the government.

    If, on the otherhand, you can't guarantee the above then you may wish to forgo the 'free' money, invest privately and have the flexibility to manage your savings/investments as you see fit.

    The bottom line is it's all down to the individual, they can choose the best method which enables them to save for the future (if they want to).

    David.

  10. #10
    Join Date
    Oct 2006
    Location
    Waterloo, Lower Hutt
    Posts
    505

    Default

    If you prefer not to invest 4 or 8% of your gross income, you can still join KiwiSaver directly with a provider, save the minimum $1042.86 per year and still qualify for the full Government top ups (Kickstart, Member Tax Credits and Fee Subsidies). You can then focus the rest of your savings into either a mortgage or other investment fund that offers more flexibility.

    As AndrewandJane said if you sign up your children they can have a nice small nest egg when they turn 18. Over 13 years (5 yrs - 18 years) the Government Contributions would be worth something like $2600 (based on 5% net return after fees which may be a little optimistic) Plus the minimum contributions the Kiwisaver Scheme requires (at least $5-10 per week).
    Once your children were working for 5 years (paying PAYE) and were at least 18 they could also be entitled to the First Home subsidies.

    KiwiSaver is also available to Self Employed people, and possibly people from overseas who have a principal base in NZ at time of joining.

    Self employed people or people in NZ who are working for an overseas company would not receive Compulsory Employer Contributions from April 2008. But they do get the Kickstart ($1000), Member Tax Credits (up to $1042.86) and Fee subsidy of $40 per year (paid in two 6 monthly installments).

    People who are in NZ and are not working may also be eligible to join KiwiSaver and gain the Kickstart, Member Tax Credit and Fee Subsidies.

    Shawn
    Last edited by eternalkiwi; 20th July 2007 at 09:17 AM.

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