KiwiSaver Basics and Benefits

KiwiSaver is a type of savings plan that's designed to help you save for your future, whether that's for a first home, retirement, or something else entirely.

You can join KiwiSaver from the age of 18, and it's a great way to start building your savings habit early.

In fact, most people start contributing to KiwiSaver through their employer, with a portion of their salary going into their KiwiSaver account each pay period.

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KiwiSaver is a type of savings account that's similar to a managed fund, where your fund manager invests your savings on your behalf.

Your KiwiSaver grows with automatic contributions from you, employer contributions of close to 3% on top of your pay, and government contributions of up to $260 every year.

You can also add to your KiwiSaver with voluntary contributions, either in lump sums or regular automatic payments, which can be made directly to your KiwiSaver provider or through Inland Revenue.

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Contributions to KiwiSaver are made up of three main components: Employee Contribution, Employer Contribution, and Government Contribution.

Here's a breakdown of the Employee Contribution options:

You can withdraw from your KiwiSaver account in certain situations, such as buying your first home, serious illness or death, significant financial hardship, or permanent emigration from New Zealand to a country other than Australia.

Each KiwiSaver scheme offers several managed funds to invest your savings in, with different risks, returns, and fees.

You can choose to invest in one fund or mix of funds that suits your needs, with a choice of seven funds available.

The risk indicator for each fund is rated from 1 (low) to 7 (high), reflecting how much the value of the fund's assets goes up and down.

Here's a breakdown of the funds available, with their corresponding risk indicators:

Keep in mind that a higher risk generally means higher potential returns over time, but more ups and downs along the way.

Funds are a crucial part of KiwiSaver, and understanding them is key to making the most of your savings.

Each scheme offers several managed funds to invest your KiwiSaver savings in, and members can invest parts of their savings in different funds. Each managed fund has different risks, returns, investment composition, and fees.

The type of fund you choose will depend on your investment goals, timeframes, and tolerance for risk. You can choose from a range of funds, including a Cash Fund, which is generally considered lower risk.

There are seven funds to choose from, including a Cash Fund, Core Conservative Fund, Conservative Fund, Default Fund, Balanced Fund, Growth Fund, and Aggressive Fund. Each fund has a risk indicator rated from 1 (low) to 7 (high), reflecting how much the value of the fund's assets goes up and down.

The risk indicator is a useful tool to help you understand the potential volatility of each fund. Here's a breakdown of the seven funds:

Remember, a higher risk generally means higher potential returns over time, but more ups and downs along the way.

To transfer your KiwiSaver funds, contact Inland Revenue and they'll have your details on file. You can call 0800 KIWISAVER or log in to My KiwiSaver to find out your provider.

KiwiSaver schemes are run by providers like banks and investment companies, and they have a number of funds to choose from. Each fund has a different mix of investments, such as bank deposits, bonds, shares, and property.

Changing funds in KiwiSaver is easy, but it's not always the best idea. Compare fees, fund performance, and services offered by providers using the KiwiSaver fund finder before making a switch.

If you decide to change funds, get in touch with your new provider and they'll help you through the steps to move your savings over.

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You can use KiwiSaver to save for a first home, as long as you've been a member for at least three years. This allows you to make a one-off withdrawal of most of your KiwiSaver savings to help with the purchase.

You may also qualify if you've owned property previously, but the three-year membership rule still applies. Our KiwiSaver calculator can help you find out how much you're on track to save for your first home.

To withdraw your KiwiSaver savings for a first home, you'll need to meet the eligibility criteria and follow the process outlined by the Kāinga Ora website.

In addition to withdrawing your KiwiSaver savings, you may also be eligible for a cash grant to purchase your first home or a piece of land. This grant is available to individuals earning less than $85,000 per year or two or more individuals earning $130,000 per year in total.

Here are the eligibility criteria for the cash grant:

This grant is in addition to the withdrawing savings option and can help you get closer to buying your first home.

You can withdraw your KiwiSaver savings under certain circumstances. If you're eligible for government superannuation at 65, you can withdraw your savings after being a KiwiSaver member for at least five years.

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You can also withdraw your savings if you've been a member for three years and want to buy your first home, excluding the government kickstart of $1000 and tax credits until 1 April 2015.

Other circumstances where you can withdraw your savings include significant financial hardship, serious illness, or if you permanently emigrate from New Zealand to a country other than Australia.

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You can take a savings suspension, also known as a contribution holiday, after 12 months. This allows you to stop your savings from growing for a period of time.

You can choose to take a savings suspension for any period from 3 months to 5 years, without any limits on future savings suspension.

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You can withdraw your KiwiSaver savings at 65, as long as you've been a member for five years. This is the main purpose of the fund, after all.

There are some exceptions to this rule, however. You can withdraw your savings before 65 if you're buying your first home, but you'll need to have been a member for at least three years. You can also withdraw your savings if you're experiencing significant financial hardship, serious illness, or if you permanently emigrate from New Zealand to a country other than Australia.

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If you're going through a divorce or the end of a de facto relationship, you can withdraw your KiwiSaver savings earned during the relationship. However, savings earned before the relationship are considered separate property and can't be claimed by your ex-partner.

You can also withdraw your savings if you're permanently emigrating to Australia, but you can choose to keep your KiwiSaver savings in New Zealand instead.

Here are the circumstances in which you can withdraw your KiwiSaver savings:

It's worth noting that if you permanently emigrate to Australia, you can choose to keep your KiwiSaver savings in New Zealand or transfer them to a complying Australian superannuation fund.

Stopping KiwiSaver contributions at 65 may be costing employers thousands of dollars.

Employers can usually stop contributing to their staff's KiwiSaver accounts when they turn 65. This includes government contributions that also stop when the person becomes eligible for NZ Super.

Westpac is calling for employers to continue making contributions to employees who are over 65.

Over the past three years, 54 percent of KiwiSaver customers aged 65 and over have continued to make contributions to their accounts.

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KiwiSaver contributors can apply for a cash grant to purchase their first home or a piece of land, if they meet certain criteria. These criteria include earning less than $85,000 per year as an individual or $130,000 per year as two or more individuals.

The government also offers an annual contribution to your KiwiSaver account, up to $260, if you're a contributing member aged 18 or over. This is in addition to your own contributions and your employer's contribution, which is at least 3% of your gross wage or salary.

If you're struggling financially, it's possible to access the funds in your KiwiSaver account early due to hardship.

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You can apply for a cash grant to purchase your first home or a piece of land if you're a KiwiSaver contributor meeting certain criteria.

The grant is for individuals earning less than $85,000 per year or two or more individuals earning $130,000 per year in total. This grant is in addition to the withdrawing savings option.

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To be eligible, you must have been a KiwiSaver member for at least three years, and you may even qualify if you have owned property previously.

You can use the Kāinga Ora website for more information on using KiwiSaver for a first home, and their website also has a calculator to help you find out how much you're on track to save for your first home.

Trans-Tasman portability of retirement savings came into force on 1 July 2013, but this doesn't affect the KiwiSaver grant for first home buyers.

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Taking advantage of KiwiSaver is a no-brainer, especially considering the benefits it offers.

Your KiwiSaver contributions come out of your pay before you see it, making saving easy. This means you'll be on track to meet your savings goals without even thinking about it.

Your employer has to contribute at least 3% of your gross wage or salary into your KiwiSaver account, on top of your own contributions. This is a great incentive to get started with KiwiSaver.

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The government also pays into your KiwiSaver account, an annual government contribution of up to $260, if you're a contributing member aged 18 or over.

You can use KiwiSaver for buying your first home through a KiwiSaver first-home withdrawal, making it a great option for first-time homebuyers.

KiwiSaver is a convenient option, as your account moves with you if you change jobs or leave the workforce.

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The Fisher Funds KiwiSaver Plan charges a fee for investing, which is a percentage of the net asset value of the fund you've chosen.

You'll pay between 0.37% and 1.23% of your investment in fees, depending on the fund you've selected.

Here's a breakdown of the estimated annual fund charges for each fund:

It's worth noting that these fees are just one factor to consider when evaluating the performance of your KiwiSaver plan.

Our Fees are transparent and based on the fund you've chosen to invest in. We have different fees for each fund option, ranging from 0.37% to 1.23% of the net asset value.

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The Cash Fund has the lowest fee at 0.45% per year. This is a relatively low cost compared to other fund options.

Here's a breakdown of the estimated annual fund charges for each fund:

It's worth noting that the Default Fund has the lowest fee at 0.37% per year.

We focus on long-term performance, which is why our 20+ strong in-house Investment Team actively manages your KiwiSaver investment.

Having a dedicated team in-house allows us to make decisions that benefit your long-term growth, rather than prioritizing short-term gains.

Our Investment Team is focused on helping you grow your wealth over the long term, which means they're always looking for ways to increase your returns sustainably.

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KiwiSaver has been labeled a "poor cousin" by international standards, including comparable government-supported schemes in the UK, US, Australia, and Singapore.

The tax advantages in other countries are substantial, and earlier withdrawal options are possible in most cases.

Criticisms of KiwiSaver have also come from within, with Winston Peters calling it a "billion dollar rort" by the finance industry.

Russel Norman of the Green Party has proposed directing KiwiSaver funds into the New Zealand Superannuation Fund, also known as the "Cullen Fund", to reduce high fees paid to the financial industry.

Frequent changes to KiwiSaver by successive governments have led to the removal of incentives originally designed to encourage KiwiSaver enrolment.

The Fisher Funds KiwiSaver Plan is a great option for those looking for a range of investment options.

With expert in-house teams, you can rest assured that your KiwiSaver journey is in capable hands.