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
  • AFTER18, GOVT. GIVES TAX CREDITS UP TO $1042 P.A./ $20 WKLYAS 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% 4%
Total you will have saved at 65 (in nominal dollars) $202,857 $275,773 $418,680
Total you will have saved at 65 (in today’s dollars) $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%
Total you will have saved at 65 (in nominal dollars) $443,597 $607,472 $929,981
Total you will have saved at 65 (in today’s dollars) $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

  • Salaries increase at5% per annum. Your contributions are assumed to increase in line with your pay (for example $200 today will be $230 in 4 years time).
  • All contributions are invested in a balanced fund earning a net real return of4% per annum.
  • No contributions holidays are taken.
  • The one-off government contribution of $1,000 is received 3 months after the first contribution is deducted from your pay.
  • Tax credits (for a maximum of $1,042.86) are added to your savings each year.
  • 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.

how can we help you?

Call Satish at Mortgage Mantra – Registered Financial Advisor