Key questions about KiwiSaver
Not sure about joining KiwiSaver? Get the answers to these key questions here:
- When should I seriously consider KiwiSaver?
- What if I'm in an existing scheme?
- How will I know what kind of investment fund to choose?
- What if I need financial advice?
- What is a PIE?
Not sure if you can still afford KiwiSaver?
If you find it difficult to keep up your contributions, you have several options. Find out more…
Thinking of changing schemes?
You can change KiwiSaver schemes at any time. Find out more…
Should I pay off debt or save in KiwiSaver?
In financial terms, the answer is “do both at the same time” – especially if you are employed. Find out more...
When should I seriously consider KiwiSaver?
Some situations in which you should seriously consider joining KiwiSaver are when:
- You can afford to contribute at least the minimum amount.
- Your employer will contribute more than the compulsory amount to your KiwiSaver account.
- You plan to buy your first home any time after the next 3-5 years, especially if you expect to be eligible for the first home subsidy – although even without it, you can still use KiwiSaver money for your purchase.
- You are over the age of 60, but not yet 65.
- You know it’s time to start saving for your retirement.
If you can afford it, and you don’t mind the funds being locked in, then KiwiSaver could provide an easy and affordable way to save for your retirement.
Budget 2011 change: The government intends to increase the minimum 2% employee contribution rate to 3% from 1 April 2013.
Keep in mind that KiwiSaver won’t suit everyone. There are other
savings options which may be more flexible and work better for you.
If you’re contributing to an existing retirement savings scheme seek
independent advice about whether KiwiSaver is right or wrong for you.Your existing scheme may for example be employer-subsidised, and/or allow employer contributions.
What if I’m in an existing scheme?
If you’re already a member of (or you’re able to join) another superannuation scheme to which your employer will contribute, you need to compare the benefits, fees, service levels and potential returns of that scheme and a KiwiSaver equivalent.
What if I need financial advice?
If you need professional financial advice, talk to an Authorised Financial Advisor and read our advice checklist.
How will I know what kind of investment fund to choose?
Try our Risk recommender calculator to see what type of risk – low, medium or high – you are comfortable with. Then use our Investment recommender to see what types of investments might suit.
See Funds and schemes to find out which organisations offer KiwiSaver schemes for each fund type - conservative, moderate, balanced, and growth.
Use our KiwiSaver fees calculator to see what fees are charged by KiwiSaver providers.
What is a PIE?
If an investment scheme is a PIE (Portfolio Investment Entity), there are some important tax advantages.
All KiwiSaver default schemes are PIEs, as well as many other KiwiSaver schemes and also non-KiwiSaver superannuation schemes.
For more information about PIEs, visit the Inland Revenue website.
