KiwiSaver benefits at different stages of your life
See how KiwiSaver can benefit you depending on your age, your work situation, whether you're buying your first home or you’re nearing retirement.
As an employee, you’ll make your own KiwiSaver contributions of 3% (2% until 31 March 2013), 4% or 8% of your gross salary or wages. This amount will be deducted from your after-tax salary or wages by your employer.
You can change your contribution rate by giving notice to your employer of the new rate you would like deducted from your salary or wages. You will need to complete a KiwiSaver deduction form (KS2) from the Inland Revenue website.
You may also benefit from your employer’s contributions. Your employer will generally be required to contribute 3% (2% until 31 March 2013) of your gross salary or wages into your KiwiSaver account. This makes achieving your retirement savings goal easier.
Jeremy owns his own home and is an employee
Jeremy contributes 4% of his gross salary to KiwiSaver. This, combined with contributions from his employer and the Government, means he is on track to achieve his retirement savings goal.
- Jeremy is 40 years old;
- earns $70,000 annual gross salary; and
- contributes 4% of his gross salary to the ANZ KiwiSaver Scheme.
|Return on all contributions||$134,507|
|Total at age 65||$292,644|
First Home Withdrawal
If you've been a member of KiwiSaver for three years, you may be able to withdraw some of your KiwiSaver savings to put towards buying your first home.**
If you’re planning to apply for the First Home Withdrawal in the next couple of years, your investment timeframe is shorter than if you were planning to save until your retirement. We recommend you seek advice from your financial adviser or contact ANZ Wealth Direct on 0800 269 238.
First Home Subsidy
A First Home Subsidy is also available through Housing New Zealand to eligible KiwiSaver members. If you’re buying a house with a partner or spouse and you both individually qualify for a subsidy, you could receive a combined subsidy of up to $10,000 towards your first home.
More information about the First Home Subsidy can be found by reading the guide to buying your first home with KiwiSaver.
Joanne has just started working and is saving for her first home
Joanne is an employee and contributes the minimum 2% (rising to 3% on 1 April 2013) of her gross salary to KiwiSaver. After she has been contributing for three years, she may be eligible for a First Home Subsidy of $1,000 per year (up to a maximum $5,000 after five years).
- Joanne is 24 years old;
- earns $30,000 annual gross salary; and
- contributes 2% (rising to 3% on 1 April 2013) of her gross salary to the ANZ KiwiSaver Scheme.
|Return on all contributions||$240,674|
|Total at age 65||$373,644|
In the example above Joanne has not made a first home withdrawal prior to reaching age 65.
If you're looking for a home loan, see ANZ's Home loans and mortgages page.
**Eligibility criteria apply.
A great kick-start for kids
Placing a little bit of money in your KiwiSaver account now is a great way to start saving for your future. You can choose to make voluntary contributions at any time.
The Government will kick-start your KiwiSaver account with a one-off contribution of $1,000 (tax free). If you become an employee, contributions will then start to be deducted from your salary or wages.
On turning 18, other KiwiSaver benefits may become available to you, such as Government incentives and employer contributions.
If you're under 18, you'll need the consent of your legal guardian(s) to join KiwiSaver.
Aged 15 or under
If you are 15 or under, the Application Form must be signed by all of your Guardians. Any one Authorised Signatory can then instruct OnePath in relation to your investment in the ANZ KiwiSaver Scheme (e.g. withdrawals, transfers, switches, etc.) until you turn 18.
Aged 16 or 17
If you are 16 or 17, the Application Form must be signed by both you and one of your Guardians. If you do not have a Guardian, then you alone may sign the Application Form. You or any one Authorised Signatory can instruct OnePath in relation to your investment in the ANZ KiwiSaver Scheme (e.g. withdrawals, transfers, switches, etc.).
Once you turn 18 (i.e. become an ‘Adult Applicant’), only you will have the right to instruct over your investment in the ANZ KiwiSaver Scheme.
Timothy’s parents want to give him a head-start on his retirement savings
One-year-old Timothy receives a tax free $1,000 Government Kick-Start contribution. By the time he turns 18, he will have his kick-start contribution, plus any returns (positive or negative).
Timothy’s parents can also contribute to his scheme. When the time comes, Timothy could put these contributions towards the purchase of his first home, or leave them in his scheme to help increase his retirement savings.
The ANZ KiwiSaver Scheme is flexible if you're self-employed or not working, as you're not required to contribute a set percentage of your pay. You can either make lump sum payments when you choose or set up regular payments.
You can also enjoy the benefits of KiwiSaver (excluding employer contributions). When you join:
- You’ll receive the $1,000 Government kick-start payment.
- You may be eligible for the Government's annual contributions of up to a maximum of $521.43 per year (approximately $10 per week). You will need to contribute at least $1,042.86 each year to receive the maximum amount.
- If you have been a KiwiSaver member for at least three years, you may be eligible for the First Home Withdrawal and First Home Subsidy.**
If you are self-employed and earn a salary or wage from which PAYE is deducted at source, and you join a KiwiSaver scheme, KiwiSaver deductions will be deducted from your pay at a rate of 3% (2% until 31 March 2013), 4% or 8%.
Kelly works for herself but still wants to make the most of KiwiSaver
As a business owner who doesn’t pay herself a salary, Kelly can contribute as much, or as little as she likes – it’s up to her. By contributing just $20 a week (or an equivalent lump sum) Kelly could get the maximum Government annual contributions of approximately $520 each year.
- Kelly is 35 years old;
- doesn’t pay herself a salary; and
- contributes $20 a week to the ANZ KiwiSaver Scheme.
|Return on all contributions||$70,937|
|Total at age 65||$133,461|
**Eligibility criteria apply.
These calculations, as at 21 September 2012, assume an initial Government contribution of $1,000, employer contributions of 3% of salary (2% until 31 March 2013), member contributions of 3% of salary (2% until 31 March 2013), and Government annual contributions of $20 per fortnight.
The investment return is assumed to be 5% p.a. after Fund Fees and assuming tax at 28%. Employer contributions are subject to employer superannuation contributions tax. Salary is assumed to increase at 2.5% p.a. Administration fees are assumed to be $2 per month before adjustment for tax at 28%, increasing at 2.5% p.a.
Calculations are provided for information purposes only. No liability is accepted for inaccurate or incomplete calculations. No person guarantees any returns on an investment in the ANZ KiwiSaver Scheme. Returns have been rounded to the nearest dollar. The calculations shown here are not in “today’s dollars” which means the projected accumulation has not been adjusted for the effect of inflation and does not show the buying power in today’s dollars. Returns do not take into consideration any investor’s personal taxation position. Investors should seek their own taxation advice specific to their situation.
Returns will fluctuate over time and it is possible you may not receive back all the capital you invested. Past performance is not an indicator of future performance.
Certain aspects of all KiwiSaver schemes, such as minimum contribution levels, the Government incentives and the circumstances in which benefits may be withdrawn, are prescribed in KiwiSaver legislation. The legislation may be amended from time to time by the Government and any such amendment may impact on the ANZ KiwiSaver Scheme.
This document is for information purposes only. Its content is intended to be of a general nature, does not take into account your financial situation or goals, and is not a personalised financial adviser service under the Financial Advisers Act 2008. It is recommended you seek advice from a financial adviser which takes into account your individual circumstances before you acquire a financial product. If you wish to consult one of ANZ’s financial advisers, please contact ANZ Wealth Direct on 0800 269 238.
Investments in the ANZ KiwiSaver Scheme are not deposits in ANZ Bank New Zealand Limited or Australia and New Zealand Banking Group Limited (together “ANZ Group”), nor are they liabilities of ANZ Group. ANZ Group does not stand behind or guarantee OnePath (NZ) Limited. Investments are subject to investment risk, including possible delays in repayment, and loss of income and principal invested. ANZ Group will not be liable to you for the capital value or performance of your investment.
A copy of the Investment Statement for the ANZ KiwiSaver Scheme is available on request from any branch of ANZ or by calling ANZ Managed Funds on 0800 736 034.
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