KIWIsaver getting shitter?
#1
KIWIsaver getting shitter?
Got an e-mail saying:
I might rethink my KIWIsaver contributions if it's not tax efficient anymore, it already comes with hang-ups through having no direct control of your investment. What do you think?
The proposed changes may be summarised as:
- Taxation of the employer's contributions to employees' KiwiSaver accounts effective from 1 April 2012.
- Decrease in the Member Tax Credits (MTCs) subsidy paid by the Government effective from 30 June 2012.
- Increase in the minimum workplace contributions required to be paid by both employers and employees effective from 1 April 2013
#2
Re: KIWIsaver getting shitter?
We decided not to bother with Kiwisaver in the end, even with the 'start-up' incentive. That's because government always seem to change the schemes , making them less attractive . These days, we prefer to be able to have much more say in what happens to any funds we may have salted away.
#3
Banned
Joined: Jul 2010
Location: Queensland, Australia
Posts: 1,010
Re: KIWIsaver getting shitter?
Government pensions schemes are invariably for their benefit and not yours, there's nothing to stop them dipping-in when it suits them, or changing the rules in their favour when they've other things to pay for (earthquakes for instance)
#4
Re: KIWIsaver getting shitter?
That's my feeling entirely. Seen it all before elsewhere. This one has been quick to change it's tune though. Not so much a gift - more a bond
#5
Re: KIWIsaver getting shitter?
But isn’t the KiwiSaver account with private companies rather than a good old fashion Ponzi scheme?
#6
Re: KIWIsaver getting shitter?
Thats the thing with the contributions as well, your employer will have to contribute 3%...and stuff. The rate of ROI in the first year is very high because of this and double for subsequent years...in effect...if ya see what I mean.
#7
Re: KIWIsaver getting shitter?
I do. But. Husband opting in makes him more expensive to keep than another plumber not opting in... if you see what I mean.
Best not.
Best not.
#8
Re: KIWIsaver getting shitter?
Surely worth a bit of opt in and out again for the first $1k added to your pension has to be worth it for filling in a few documents.
Thats the thing with the contributions as well, your employer will have to contribute 3%...and stuff. The rate of ROI in the first year is very high because of this and double for subsequent years...in effect...if ya see what I mean.
Thats the thing with the contributions as well, your employer will have to contribute 3%...and stuff. The rate of ROI in the first year is very high because of this and double for subsequent years...in effect...if ya see what I mean.
#9
Re: KIWIsaver getting shitter?
So if I put in 2% of my salary, my employer puts in 2% as well? Plus the govt adds another $512 at the end of the year? Hhhmmmm .....
I joined a Kiwisaver scheme that allows me to pick and choose the investments, not that the share market has helped my returns! But with what my employer has put in, the bonuses from the govt, I'm still way ahead.
Each to their own.
I joined a Kiwisaver scheme that allows me to pick and choose the investments, not that the share market has helped my returns! But with what my employer has put in, the bonuses from the govt, I'm still way ahead.
Each to their own.
#10
Re: KIWIsaver getting shitter?
Not really. Each to keep their own employment safe to be cost effective.
You , on the other hand , are self employed are you not.
You , on the other hand , are self employed are you not.
#12
By name and by nature
Joined: Mar 2005
Posts: 1,852
Re: KIWIsaver getting shitter?
So if I put in 2% of my salary, my employer puts in 2% as well? Plus the govt adds another $512 at the end of the year? Hhhmmmm .....
I joined a Kiwisaver scheme that allows me to pick and choose the investments, not that the share market has helped my returns! But with what my employer has put in, the bonuses from the govt, I'm still way ahead.
Each to their own.
I joined a Kiwisaver scheme that allows me to pick and choose the investments, not that the share market has helped my returns! But with what my employer has put in, the bonuses from the govt, I'm still way ahead.
Each to their own.
#13
BE Enthusiast
Joined: Jan 2008
Location: permanently locked down
Posts: 733
Re: KIWIsaver getting shitter?
Yep, no doubt the incentives for Kiwisaver are being drastically reduced, 2 and 3 you mention were clear in the Govt's Budget Announcement earlier in the year the other was hidden in small print.
As the members tax credit from govt is annually based and runs to June 2012, it's effectively already been reduced.
That said I don't think there's any advantage from stopping contributions, or not joining if haven't already done. Unfortunately there's no orther tax efficient saving in NZ except for those owning 2nd and 3rd homes having no capital gains tax to pay.
Also it's private companies that run the schemes not the govt. You've choice where it goes.
Only disad is that you can't access the money til your 65', so the there's no incentive to put in more than to get to get tax credits and employer's contribution.
Re: pensions, the govt (& Labour the same) are being disingenuous in refusing to raise the pension age. It's bound to go up as the country can't afford it, Australian & practically all European govts have raised the age.
#14
Re: KIWIsaver getting shitter?
We don't have a compulsory retirement age anyway do we? Companies have to "restructure" people out of jobs instead.
#15
Re: KIWIsaver getting shitter?
I agree that the age probably will go up, but I'm not sure I think it is a good thing for the economy. We have high youth unemployment (as do many other countries right now) and increasing the retirement age will create a bottle neck at the top for jobs. Thus more young people on the dole with the attendant costs and social problems. Many people, like my mum at 71, love their jobs and plan to stay, but many others are counting down the hours to the day they can get their super.