A powerful way to invest in your future

Unlike the banks and other financial service providers, Thorner Investment Services Ltd have a range of KiwiSaver providers that they can recommend and will do so the basis of what provider will likely deliver the best outcome for each client.

We highly recommend you take advantage of the positive benefits of KiwiSaver membership.

Why? Because it’s designed to help you achieve long term savings for your retirement.

How? Your contributions, employer contributions and Government contributions form your investment funds. These funds are invested by your KiwiSaver Provider who will add or subtract investment returns, and deduct any fees, withdrawals or taxes. You then have your KiwiSaver funds accumulating over time into a nest egg for your retirement.

Put simply, here’s how it works:

• If you’re an employee you select a contribution rate of 3, 4, 6, 8 or 10% of your gross wage or salary to go into your KiwiSaver account. You are also able to make additional contributions often referred to as “voluntary contributions” directly from your bank account to your KiwiSaver provider.
• Employer contributions will also be added to your KiwiSaver account.
• Self employed can also join KiwiSaver and get the benefit of the Government contribution.
• Government contribution up to $521.43p.a. apply if you’re living in New Zealand and aged 18 and over.
• Withdrawing funds to assist with first home deposit, please see below for additional information.
• KiwiSaver funds are generally locked in until the age of eligibility for New Zealand Superannuation (currently 65).

From 1 July 2019

• Anyone aged 65 or over will be able to join KiwiSaver.
• The five-year membership lock-in period will no longer apply for members aged 60-65 who join a KiwiSaver scheme for the first time. This means that when members turn 65: (1) they will usually be able to withdraw their savings no matter how long they’ve been a member; (2) they will not be eligible for Government contributions; and (3) their employer can also stop their contributions.
• The lock-in period will continue to apply to individuals who joined KiwiSaver on or after 1 July 2019 as a result of a transfer from a complying superannuation fund, if the individual first became a member of the complying superannuation fund prior to 1 July 2019.

From 1 April 2020

• Members who are 60 or over and joined a KiwiSaver scheme or a complying superannuation fund before 1 July 2019 will have the option to opt out of the five-year membership lock-in period. If they opt out, they will not receive Government contributions and their employer can stop making contributions.

Your KiwiSaver questions answered

KiwiSaver facts: KiwiSaver started in 2007. Since then, over 2,000,000 New Zealanders have kick started their retirement or first home deposit savings with KiwiSaver. KiwiSaver offers attractive benefits, plus it’s one of the few opportunities to receive money from the Government. Combined with small regular contributions, members can benefit from the “snowball effect” of compound returns and watch their retirement savings grow over time.

Government Contributions: Joining KiwiSaver makes you a member. Members aged over 18, living in New Zealand, receive “Government Contributions”. Under the current rules the first $1,042.86 (approximately $20 per week) you invest over the course of the KiwiSaver financial year (1 July to 30 June) will attract “Government Contributions” to a maximum of $521.43. If making manual contributions, Peter can make sure you get the full benefits.

Employer Contributions: Employers are required to contribute to their employees’ KiwiSaver account if the employee is also making contributions.

What if I am self-employed or not currently working?: If you’re self-employed or not currently working you can make payments directly to your KiwiSaver provider and receive the Government member tax credits. Contact Peter and he will show you how easy this is to setup.

First Home Deposit: After 3 years of KiwiSaver membership you may be able to withdraw funds to assist you in a getting a deposit for your first home (you must leave at least $1,000 in your KiwiSaver account). Talk to Peter for more information on how your KiwiSaver account should be invested if you are likely to use funds for your first home deposit and other information you need to be aware of.

A powerful way to invest for your future: Small, regular contributions from your pay, along with the special incentives provided for members make KiwiSaver a powerful way to invest for your future. Don’t miss out on your opportunity to start building a nest egg for your retirement or first home deposit.

What if I am already in KiwiSaver?:  Peter can provide a free review of your current KiwiSaver account. He’ll make sure the investment strategy is appropriate for you, ensure you are on the right tax rate and that you are on track to receive the maximum benefits of KiwiSaver.

Employers:

We are available to be nominated as your preferred Employee Adviser. That means we’ll provide your new and existing employees with a no-obligation overview of their KiwiSaver options, so they can understand the various providers and funds available to them. This also assists you, as the employer, to meet your obligations to your employees.

Got more questions? To talk to a real person about KiwiSaver, call our KiwiSaver expert, Peter West on (04) 939 2902 or email peter@thorner.co.nz