How kiwi Saver works

[Charlsjoseph]

Hey friends,

Anyone here have the idea about how kiwi saver works ? the advantages of having a kiwi saver account ? from where it will be good to open a kiwi saver account (Bank/Employer) ? Please someone share the experience with kiwi saver. We are in confusion whether to start a kiwi saver account or not.

Thank you

[jawnbc]

Kiwisaver is one of the main "superannuation" portfolios in New Zealand. It is a very good idea to contribute to a "super" fund of some sort. Many employers make a nominal contribution, which you can match or exceed. There are some industry specific ones like UniSuper, which is what I contribute to as a university employee. If you are from Australia, it is possible to transfer super funds between Australia and NZ. If you have super or IRAs (US) or RRSPs (Canada), you will need to do something with those before having tax residence in NZ for 48 months--otherwise you'll owe taxes here on those holdings.

I'm crap with money and apologise for the crap explanation. I am married to an accountant so I do what he says

[Charlsjoseph]

Kiwisaver is one of the main "superannuation" portfolios in New Zealand. It is a very good idea to contribute to a "super" fund of some sort. Many employers make a nominal contribution, which you can match or exceed. There are some industry specific ones like UniSuper, which is what I contribute to as a university employee. If you are from Australia, it is possible to transfer super funds between Australia and NZ. If you have super or IRAs (US) or RRSPs (Canada), you will need to do something with those before having tax residence in NZ for 48 months--otherwise you'll owe taxes here on those holdings.

I'm crap with money and apologise for the crap explanation. I am married to an accountant so I do what he says

Thanks a lot for the information. Since I'm from India and I have NZ residency , So I think I can go a head and join the kiwi saver.

[Auckland2016]

Also, you can get member tax credit for contributing to kiwisaver, that is $521 free money from the government!

http://www.kiwisaver.govt.nz/new/benefits/mtc/

[Isatis]

If you aren't familiar with the jargon, you basically choose a percentage of your income to be saved into kiwisaver (3%, 5%, 10%...). Your employer generally puts in a similar amount, and the government will also contribute based on how much you put in (currently max $521 a year as above ^). It's a scheme to help you save, and you can't touch the money in it unless you are buying your first house, reach retirement age or (I think) declare bankruptcy.
Personally I think it's a good idea to talk to your bank once you get it, as they can link it up. This allows you to see how much is in your kiwisaver when you bank online, and you can choose if you want them to invest your money/what kind of fund it's in (i.e. can get some interest!). They often also send you reminders of how much you need to contribute to get the full $521 from the government.

[Charlsjoseph]

If you aren't familiar with the jargon, you basically choose a percentage of your income to be saved into kiwisaver (3%, 5%, 10%...). Your employer generally puts in a similar amount, and the government will also contribute based on how much you put in (currently max $521 a year as above ^). It's a scheme to help you save, and you can't touch the money in it unless you are buying your first house, reach retirement age or (I think) declare bankruptcy.
Personally I think it's a good idea to talk to your bank once you get it, as they can link it up. This allows you to see how much is in your kiwisaver when you bank online, and you can choose if you want them to invest your money/what kind of fund it's in (i.e. can get some interest!). They often also send you reminders of how much you need to contribute to get the full $521 from the government.

That's interesting, what we are not having currently is "Savings" So it's a great idea to start with kiwi saver.

Thanks for the information.