Kiwi Saver

KIWI SAVER

Retirement savings scheme / useful for 1^st home buyers as well

·         OPEN TO ALL NZ CITIZENS/RESIDENTS

·         FROM NEW BORNS TO AGE 65

·         IF U R UNDER 18,NEED PARENT/GUARDIAN CONSENT

·         SHOULD HAVE AN IRD NUMBER

·         KICK-START TAX-FREE AMOUNT OF $1,000 FROM THE GOVERNMENT

·         AFTER  18, GOVT. GIVES TAX CREDITS UP TO $1042 P.A./ $20 WKLY

AS LONG AS U CONTRIBUTE $1042 P.A.

·         EMPLOYER HAS TO CONTRIBUTE 2% TO MATCH YOUR CONTRIBUTION

·         1ST HOME DEP SUBSIDY AFTER 3 YEARS CONTRIBUTIONS-$1K P.A.

·         UP TO $5,000 1^ST HOME SUBSIDY AFTER CONTRIBUTING 5 YEARS

·         FIRST HOME SAVINGS WITHDRAWAL

·         AUTOMATICALLY ENROLLED BY EMPLOYER IF NOT MEMBER

·         IF NOT EMPLOYED,U CAN MAKE REGULAR OR LUMP-SUM CONTRIBUTIONS

·         IF SELF-EMPLOYED, U CAN STILL ENROL AND MAKE YOUR CONTRIBUTIONS & GET TAX CREDITS UP TO $1042 P.A.

·         Starting on taxable pay of $45,000, from age 40 until 65:

Employee KiwiSaver contributions	2%	4%	8%
Total you will have saved at 65 (in nominal dollars)	$202,857	$275,773	$418,680
Total you will have saved at 65 (in today's dollars)	$123,648	$168,092	$255,198
Amount you will invest weekly in first year	$17	$35	$69
Employer weekly contributions	$17	$17	$17
Tax credits in first year (paid on 1 July)	$640	$742	$742
Maximum tax credits in future years	$1,043	$1,043	$1,043

 

starting on taxable pay of $45,000, from age 30 until 65:

Employee KiwiSaver contributions	2%	4%	8%
Total you will have saved at 65 (in nominal dollars)	$443,597	$607,472	$929,981
Total you will have saved at 65 (in today's dollars)	$221,811	$303,753	$465,016
Amount you will invest weekly in first year	$17	$35	$69
Employer weekly contributions	$17	$17	$17
Tax credits in first year (paid on 1 July)	$640	$742	$742
Maximum tax credits in future years	$1,043	$1,043	$1,043

Assumptions

1.      Salaries increase at 3.5% per annum. Your contributions are assumed to increase in line with your pay (for example $200 today will be $230 in 4 years time).

2.     All contributions are invested in a balanced fund earning a net real return of 4% per annum.

3.     No contributions holidays are taken.

4.     The one-off government contribution of $1,000 is received 3 months after the first contribution is deducted from your pay.

5.     Tax credits (for a maximum of $1,042.86) are added to your savings each year.

6.     This calculator assumes your investments are in a managed fund which is a PIE (Portfolio Investment Entity). Your PIE income is taxed at either 10.5%, 17.5% or 28%, depending on your income.Find out more about PIEs.