Moomoo

Mr Moomoo here ...

I have been given a job offer on a salary equivalent to what I am being paid in the UK. The issue for me is pensions (I am aged 45). My prospective employer has not offered to contribute towards a pension scheme and I just wondered if this is normal practice? I have a final salary scheme based in the UK which I will keep but would welcome any advice on state and voluntary contributory pensions that may be applicable. I would like to retire at 60.

Thanks

Mr Moomoo

mickey_d

This is the main thing here now:-

http://www.kiwisaver.govt.nz/?gclid=...FRnwYAod4TUYlw

Kiwiprincess

Quite normal. Some do, some don't. From my experience big companies and organisations tend to. The smaller ones not so much. However,with the introduction of Kiwisaver it is going to change things somewhat. But again, in many cases I suspect many organisations will be contributing to kiwisaver for no other fancy reason than they have to by law!!

KiwiKate

Well, funnily enough I spoke to an Invesment Advisor today about this very thing, and he said as long as you have been a PR for at least 10 yrs you are entitled to NZ superannuatiopn (the equivalent of a state pension i think) ... so you would have at least 10 yrs to go on ... it is pretty unudsual for an employer to offer a pension scheme, but the kiwi saver (despite what some may say) is pretty good, with the gov. putting in $1000 von you opening a plan, and tghen matching $ for $ up to $1400 (approx.) contributions oper year - plus you don't have to use your fund to purchase an annuity on withdrawal - you could just take the lot ikn a cash lump sum ... beats the 25% max the UK allows you ...

Again, I'm no expert, this is just the gist I got from AXA guy, bu seems pretty straight forward

donnaf

Talking to people at work their concern about kiwisavers is : it could change with a change of government and there is no guaranteed return. This has put me off a bit.

KiwiKate

Well to be fair, what pension scheme (aside from the incresasingly rare final salary scheme) has a guaranteed return??? They are all investement funded, and hence have no exact remuneration - but the up-side is that they are almost certain to outperform deposit based accounts. Think long term ... and as for government changes, any new incumbant government would have a lot of pressure on them to safeguard voters investments made under previous governments. On the whole the kmiwi saver has a hell of a lot going for it.

Bellasmum

I would join Kiwisaver if I was you M. It will be a brave (and silly move) for any new govt to get rid of it.

NZ has been done that road in the past and I doubt the Nats will be silly enough to go back there.

Moomoo

Thanks for the advice- I am 45 so need to consider what happens my potential UK state pension. I will qualify for the NZ pension providing I work for 10 years. I know I can't have both. I am not sure how to ensure i don't loose out- perhpas I need to contact the pensions office?

Thanks

Mr Moomoo

Bellasmum

I am in a work super, have been getting super (pension)for a month and also work full time. I pay top dollar tax on both but put my Super (pension) into Kiwisaver. I wont be able to draw on it until I hit 69 however the tax reductions etc of KS are worth it.

You may find this helpful

http://www.sorted.org.nz/home/sort-me/index.php

Moomoo

Mr Moomoo again- I have looked on Kiwi saver and it appears that there is to be a mandatory employer contribution of up to 4% by 2011. My job offer seems to suggest that this employers contribution will be deducted from my salary.........this can't be normal surely?

Mr Moomoo

RobClubley

You are automatically enrolled in Kiwisaver when you start a new job, and either 4% or 8% is deducted from your salary to contribute. This is your personal contribution, separate to the employer's.
You have 8 weeks after starting the job to opt out of this if you want.
The mandatory employer contribution starts at 1% from April, raising by 1% a year until it gets to 4%

Yotty

Okay, so do you get tax relief on your employee payments? ie do they deduct the money you pay in before taxing your salary?

RobClubley

Nope. No tax relief on pensions that I know of
Kiwisaver gives you $1000 starting bonus and up to $1080 (I think) a year tax back against your contributions.
So you get a little bit back.
But it's not as good as UK pensions that way.

Yotty

WEll that probably compensates for being able to take the whole amount as a lump sum ...

sarahlou2411

Some organisations are exempt from enrolling you in Kiwi saver. I have just got a job with corrections and they give you the option to do kiwisaver or the organsation (via axa ,asb and another bank) pension scheme.
So it can also depend on who you are employed by. I would imagine other exemptions would be the police force etc...