Monday, 10 October 2011

Kiwi Saver


KIWI SAVER
Retirement savings scheme / useful for 1st 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 1ST 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%
$202,857
$275,773
$418,680
$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%
$443,597
$607,472
$929,981
$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.


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