US citizen, make sense to do Kiwisaver?

[dede]

I know there are real issues with Superannuation and US social security. We aren't counting on getting much of anything...but does the same apply to Kiwisaver? Would Kiwisaver pay out to a US citizen/NZ permanent resident or US Citizen/NZ dual citizen if they weren't living in NZ? Heck, would it pay out if we were ordinarily resident? There is scheme at work which will match up to 4% of contributions and I could pay in up to 8% of salary. I'm getting tax advice but I'm curious and want to know. Inquiring minds...

[Millieandme]

KiwiSaver is a defined contribution plan. The funds go into an account in your name invested in the plan and provider you select. At age 65, you get whatever you have contributed plus any income the funds have earned. Essentially it is a locked in savings account. The difference between doing Kiwisaver and opening a regular savings account is that the government gives incentives for you to put funds in Kiwisaver. You get $1000 when you open your account and up to $521.43 per year depending on now much you put in.

To be eligible for KiwiSaver, you have to have a residence visa. To get the annual credits, you have to be resident here. If you leave NZ permanently before 65, you have to give back the annual credits but you get to keep your contributions, any contributions your employer makes, and the income earned.

So if you are going to be saving anyway for retirement, Kiwisaver gives you some government money as a bonus. No tax benefits as far as I know. Employer contributions were tax free until last year but not any more.

[Adams Girl]

I'm fully paid up in the US SS scheme. Even though I'm a citizen, I fully expect for them to not pay out one red cent. They'll find a way to not to. I guarantee it.

[dede]

I know about super and I'm paid up for US SS and dont expect much out of NZ Super but my question is specifically to Kiwisaver. Whether they claw that back too. If not, as a resident, I will pay in 8pc of my salary and take the 4pc match plus gvt incentives.

[Millieandme]

Kiwisaver is not social security. There are no future benefits funded by the government. For a US comparison, it is more like a 401k.