Retirement saving made easy . . .

KiwiSaver is a voluntary, work-based savings initiative with a range of membership benefits.

NBS offers KiwiSaver through the LifeStages KiwiSaver Scheme. The manager of the LifeStage KiwiSaver Scheme is Funds Administration New Zealand Limited (FANZ).

A current Investment Statement and Adviser Disclosure Statement are available on request free of charge from and NBS branch.

New members joining KiwiSaver from 2pm, 21 May 2015 will not receive the $1,000 kick-start contribution.

 

KiwiSaver is a voluntary, work-based initiative to help with your long-term saving for retirement. It is designed to be hassle-free so it is easy to maintain a regular savings pattern.

There are a range of membership benefits to encourage you to get saving. They include regular contributions from your employer and an annual tax credit paid by the Government. Some people may also be eligible for help with the deposit on their first home.

KiwiSaver schemes are managed by private sector companies called KiwiSaver providers. NBS offers KiwiSaver through the LifeStages KiwiSaver Scheme. The manager of the LifeStages KiwiSaver Scheme is Funds Administration New Zealand Limited (FANZ).

KiwiSaver is not guaranteed by the Government. This means you make your investment choices in a KiwiSaver scheme at your own risk.

The manager of the LifeStage KiwiSaver Scheme is Funds Administration New Zealand Limited (FANZ). The above information is for general information purposes and is designed for use by New Zealand residents only. Interest in the Scheme do not represent deposits or other liabilities of NBS. Interests in the Scheme are subject to investment risk including loss of income and principal invested. Neither NBS nor any other person guarantees the interests in the Scheme (including the repayment of any capital or the performance of those securities). A current Investment Statement and Adviser Disclosure Statement are available on request free of charge from and NBS branch.

For many people KiwiSaver will be work-based. This means you will receive information about KiwiSaver from your employer, and your KiwiSaver contributions will come directly out of your salary/wages.

If you choose to join, contributions are deducted from your salary/wages at the rate of either 3%, 4% or 8% (you choose the rate) and invested for you in a KiwiSaver scheme.

After 12 months of contributing you can apply to take a contributions holiday of between three months and five years. At the end of each contributions holiday you can apply for a further contributions holiday.

If you are self-employed or not working, you agree with your KiwiSaver provider how much you want to contribute, and make payments directly to them.

Your KiwiSaver savings will generally be locked in until:

  • You are eligible for NZ super (currently 65) or 
  • You have been a member for at least five years (if you joined over the age of 60)

You may be able to make an early withdrawal or part (or all) of your savings if you are: 

  • Buying your first home 
  • Moving overseas permanently 
  • Suffering significant financial hardship 
  • Seriously ill

NZ Super provides for a basic standard of living in retirement, but it may not be enough for the kind of retirement you want. Having a KiwiSaver account does not affect your eligibility for NZ Super or reduce the amount of NZ Super you would be eligible for.

KiwiSaver savings will complement NZ Super to provide you with a better standard of living for your retirement.

The great thing about KiwiSaver is it is not just your money building your nest egg. The Government and your employer may put money in as well.

  • You may be entitled to member tax credits from age 18 until you can take out you can take out your end KiwiSaver retirement savings if you mainly live in New Zealand. The Government's member tax credit rate is $0.50c for every $1.00 you contribute up to a maximum of $521.43 per annum (subject to eligibility).
  • If you are employed and contributing your employer will generally contribute as well. They will contribute from when you are aged 18 until when you can take out your end KiwiSaver retirement savings
  • Employer contributions are generally 3% of your gross (pre-tax) salary or wages, less employer superannuation contribution tax
  • If you are employed you can choose whether to contribute 3%, 4% or 8% of your pre-tax salary or wages
  • If you are self-employed or not working, you agree with your KiwiSaver provider how much you want to contribute, an make payments directly to them.

An example of how it all stacks up

Based on a person earning $40,000 pre-tax a year and contributing 3% for 40 years

Government Contributions $21,464
Employer Contributions $53,725
Your Contributions  $65,121
TOTAL $140,310



** Assumptions made on the above example:

  • A gross salary of $40,000 (including "real" (net of inflation) increases of 1.5% per year)
  • Employee contributions of 3% of pre-tax salary
  • Employer contributions of 3% of pre-tax salary and taxed at 17.5% EXCT rate.
  • Member tax credits of $521.43 per annum and a one off $1,000 kick-start payment.
  • No withdrawals or contribution holidays.
  • No changes to Government, member or employer contribution rates

And your savings could be earning investment returns on top of that (returns may be negative and fees and taxes apply).

New members joining KiwiSaver from 2pm, 21 May 2015 will not receive the $1,00 kick-start contribution.

KiwiSaver First Home Withdrawal

With the KiwiSaver first home withdrawal facility you may be able to withdraw some of your KiwiSaver savings (including any employer contributions and annual Government contributions) to help you buy your first home if:

  • You have been a member of KiwiSaver (or a complying superannuation fund) for three years or more;
  • You have not previously made a withdrawal from a Kiwisaver scheme to buy a home;
  • This will be the first time owning your own home or land;
  • You intend to live in the home that you are buying (or intend to build a home to live in on the land that you are buying); and
  • The property or land is located in New Zealand

KiwiSaver HomeStart Grant

After 3 years of contributing to KiwiSaver, you may be entitled to a KiwiSaver HomeStart grant. The grants are administered by Housing New Zealand and will be paid to your solicitor.

The two HomeStart grants are:

  • For purchasing an existing home, the grant is between $3,000 and $5,000 based on $1,000 each year of KiwiSaver membership.
  • For building or purchasing a new home, or for purchasing land to build a new home on, the grant is, in effect doubled to, $2,000 per year of membership in the scheme, up to a maximum of $10,000 for five years for each member.

There are maximum values of grants payable for the purchase of a single dwelling, regardless of the number of eligible purchasers:

  • $10,000 for the purchase of an older/existing property
  • $20,000 for the purchase of a new property

To be eligible for a KiwiSaver HomeStart grant you must:

  • Have been contributing the required minimum amount to KiwiSaver for at least three years
  • Be 18 years or over
  • Be purchasing or building your first home
  • Have a deposit that is 10% or more of the purchase price, including the addition of the grant

Note: Income and house price caps will apply. If you've owned a home before, in some circumstances you may still be eligible for KiwiSaver First Home Withdrawal/KiwiSaver HomeStart grant. Housing New Zealand will need to determine that you are in the same financial position as a first home buyer.