The deal with Kiwisaver

In New Zealand there is currently no compulsory superannuation. Some organisations, especially within the public sector, do offer a superannuation as a benefit.

Having said that, the government has just implemented “Kiwisaver” which is a voluntary, long-term savings initiative to help set you up for your retirement. Most KiwiSaver members will build up their savings account through regular contributions from their pay.

Six financial institutions have been appointed by the Government to be default scheme providers through a tender process managed by the Ministry of Economic Development. The default providers are:

• AMP Services (NZ) Limited
• ASB Group Investments Limited
• ING (NZ) Limited
• Mercer Human Resource Consulting Limited
• National Mutual Corporate Superannuation Services Limited (trading as AXA New Zealand)
• TOWER Employee Benefits Limited
  
  

Please note that you are allowed to join other schemes outside these. For these providers, you will pay either 4% or 8% of your income. The Government will match you up to $20 per week.

You are able to access your money at the age of 65 (the current retirement age).

The government will give you:

• a $1000 tax free one off kick-start when you join the scheme
• a member tax credit of up to $1,042.86
• a regular fee subsidy
• a first home deposit subsidy if you qualify

If you have a mortgage on a house you live in, you also have a mortgage diversion after 12 months as a member. This means you are able to split your contributions to the scheme of up to half, and pay half into your mortgage and the other half to Kiwisaver.

There are quite specific rules around Kiwisaver so we recommend that you familiarise yourself with the scheme. Find out more information on Kiwisaver here.

Register with us now and take the next step in your career.