11ThousandMilesFromHome

Ok so i'm confused...doesn't take a lot i know

just been looking at the kiwisaver and while doing so it said about superannuation

So can anyone tell me anything about either of these please?

Do i need to pay into both schemes?

i'm 40 this year and will be starting full time work this month

many thanks in advance

happynz

Superannuation is like a government paid pension. Kiwisaver is a savings plan that you can't access (generally speaking) until you are sixty-five years old. The government will start you out with a thousand and top you up with a thousand each year. 4% or 8% of your gross salary will be deducted and by 2011 your employer will match your deductions up to 4%.

You will have a choice of Kiwisaver management providers. You will then choose which level of risk you wish to take.

At age sixty-five you can withdraw your Kiwisaver account funds in one lump payment if you wish.

That's sorta how I understand it.

julesnye

Cheers for this Happynz as I was wondering the same

11ThousandMilesFromHome

Brilliant...thank you!!!

But i don't like the bit where you say 'You will have a choice of Kiwisaver management providers'

you mean i've got to make a decision about thisOMG, that'll be difficult...any views on which one to go for?????????????

nero

Legally all employers will have to pay 1% into each employees kiwisaver account as from April 1st 2008. This will increase to 2% by April 2009 and reach the magic 4% by 2011.

After a period of time I think about two years (say if you returned to the UK or moved to Australia) you could attempt to take it with you. But you could not cash it in, all you could do is transfer it to a similar scheme in your new country.

http://www.kiwisaver.govt.nz/

This is quite a good site, if you are in NZ the telephone helpdesk are really friendly and are quite happy to answer any questions.

Hope this helps

happynz

Perhaps go to your bank and ask them to help you sign up with Kiwisaver. They will likely have a financial services provider, erm...provided. You will be asked to state which levels of risk you wish to invest your money. You can choose a mixture of risk options from very conservative to high risk portfolios.

I hope this helps.

RobClubley

I think you can cash it in. You just lose all of the money the government gave you. So if you plan to leave NZ in a few years don't power!

As I understand it, your employer doesn't have to pay the 1% unless you're already signed up and paying your 4 or 8%

Plus you get $1000 starter, then tax breaks up to just over $1000 a year, not just a grand a year

Frenchy

Mandie I think working for DHB we have a better deal to on Kiwi saver (I have just joined) speak to the NZNO