Quick Answer: How Much Do I Need To Pay Into KiwiSaver?

Do I have to contribute to KiwiSaver?

How much your employer must contribute to your KiwiSaver account.

Your employer must contribute at least 3% of your gross earnings on top of your regular pay unless: they’re already paying into another eligible scheme for you.

you’re under 18 or over the age of eligibility..

What happens to my KiwiSaver if I die?

If you die while you are a member of a KiwiSaver scheme your full account balance will be paid to your estate. You can’t nominate people (called ‘beneficiaries’) to receive your funds directly from your KiwiSaver Scheme; your provider always has to pay it to your estate.

Who has the best KiwiSaver scheme?

Best Performing KiwiSaver Funds – Mar 2020Conservative Fund Category: Milford Conservative Fund (Five Year Returns: 5%).Moderate Fund Category: Generate Conservative Fund (Five Year Returns: 5.4%).Balanced Fund Category: Milford Balanced Fund (Five Year Returns: 6.2%).Growth Fund Category: Milford Active Growth Fund (Five Year Returns: 7.3%).More items…

Can employers opt out of KiwiSaver?

Employers must cease KiwiSaver deductions They can only opt out between their 14th and 56th day of employment. After this time, they must continue to be a member of KiwiSaver, unless they are granted a late opt-out by the IRD.

How do I maximize KiwiSaver?

How to Maximise Your KiwiSaverIncrease your KiwiSaver contributions. … Make voluntary contributions to your KiwiSaver account. … Escape the default fund. … Minimise your KiwiSaver account fees. … Make sure you get the full member tax credit. … Take interest in your KiwiSaver statement.

Can the government take your KiwiSaver?

The government – through Inland Revenue – has set up KiwiSaver and makes sure that the money you put in (and any KiwiSaver employer contributions) goes into your account. … But that money is yours and cannot be taken back by the government.

Do employers match KiwiSaver?

Your compulsory employer contribution can go to one or be shared between them. For example, 2% to KiwiSaver and 1% to the complying fund. Your compulsory employer contribution must still be at least 3%. If you give less than 3% to a complying fund you must pay the difference to your employee’s KiwiSaver scheme.

Can you contribute more than 8% to KiwiSaver?

You can choose to contribute 3%, 4%, 6%, 8% or 10% of your pay. The default rate is 3% if you don’t choose a higher rate.

Can I stop paying into KiwiSaver?

How do I stop contributing to KiwiSaver if I can’t afford it? If you’re making regular contributions from your salary or wages, you can apply to Inland Revenue (IR) for a savings suspension. This means your employer will stop deducting regular contributions from your pay.

How much does the govt contribute to KiwiSaver?

Annual Government Contribution. If you’re eligible, you could get a boost to your KiwiSaver savings thanks to an annual contribution from the Government. For every $20 you save into your KiwiSaver account, the Government will contribute $10, up to a maximum of $521.43 each KiwiSaver year (1 July to 30 June).

Which bank is best for KiwiSaver?

Simplicity’s Conservative Fund is the #1 performer for 1-year and 3-year returns. Its low fee structure helps achieve this and means you can spend the money (and not lose it in above-average fees). More details: Simplicity KiwiSaver review.

How much KiwiSaver can I withdraw?

If you have been a member of KiwiSaver for at least three years, you may be able to withdraw all, or part, of your savings to put towards buying your first home. Eligible members can withdraw their KiwiSaver savings (including tax credits). However at least $1,000 must remain in their KiwiSaver account.

Are KiwiSaver contributions tax free?

Your KiwiSaver scheme invests your contributions so they earn money for you. You pay tax on the money your investment earns. Withdrawals from your KiwiSaver scheme are tax-free. To use the right tax rate you need to know what kind of KiwiSaver scheme you’re in.

Why is my KiwiSaver going down?

Your KiwiSaver money is often invested in shares on the share market, so it is affected by market volatility (ups and downs). When the market rises and falls, your balance can increase or decrease. When it goes up, it’s great. But sometimes it falls, gently and gradually, or sometimes sharply.

Can you put money into KiwiSaver?

You can contribute to KiwiSaver through your employer, who will deduct either 3%, 4%, 6%, 8% or 10% of your gross salary, depending on which amount you choose. You can also contribute directly by making voluntary payments to your KiwiSaver provider, or through Inland Revenue.