Five Things You Need To Know About KiwiSaver Before You Join
The KiwiSaver Government website publishes monthly statistics about KiwiSaver to show details such as join rate and demographic information about contributors.
When you look at the breakdown of individuals in terms of their average age, you can see that there is a fairly even distribution of contributors.
KiwiSaver caters to young and older demographics so it is no surprise to see 594,000 contributors aged from 25-34 and 511,000 contributors in the 55 plus cohort.
The latest annual statistics about KiwiSaver show that as of June 2017, over 2.8 million people had signed up for KiwiSaver. 1.1 million people had also joined through automatic enrolment.
Despite the strong sign up rates, there are still over 1 million people that have not signed up to KiwiSaver.
Before you join, we want to share with you five things that you need to know, and also explain how to use our KiwiSaver Comparison Tool.
1. How Can I Join KiwiSaver?
There are three methods that you can use to join KiwiSaver:
- Automatic enrolment when you start a new job
- Going through a KiwiSaver provider
- Opting in through your current employer
If you are self-employed, you can still enjoy all of the benefits of KiwiSaver except for the employer contributions. You can make the decision on how much you agree to contribute.
2. KiwiSaver is Beneficial for First Home Buyers and Retirement Planners
KiwiSaver is an investment savings initiative that is designed to cater for the needs of people at different ages.
Whether you are saving for your first home deposit or looking to build a healthy retirement nest egg, KiwiSaver can help you.
3. The NZ Government Matches Your Contributions
For every dollar that you contribute to your KiwiSaver account, the New Zealand Government will match every dollar you put in by 50 cents.
This figure caps at a maximum of $521 per year. Anyone earning $35,000 or more and contributing 3% will receive this full amount every year.
4. Your KiwiSaver is Managed by Your Provider
Your KiwiSaver contributions and funds are managed by private KiwiSaver providers and not the government.
Your provider will invest your money into different assets based on the fund that you choose.
If your KiwiSaver provider goes out of business there is no need to worry as your investments are protected in trusts.
5. KiwiSaver Complements NZ Super
In no way does KiwiSaver affect your eligibility for New Zealand Superannuation.
Think of KiwiSaver as an add-on to your NZ Super. NZ Super on its own is great but with KiwiSaver contributions, you can have a much better nest egg when you enter retirement.
Use Our KiwiSaver Comparison Tool to Learn More about Funds
Thinking about joining KiwiSaver but not sure which fund or provider to start with? At glimp, we help Kiwis make the decision of choosing the right fund easier with our KiwiSaver Comparison Tool.
Quickly Compare KiwiSaver Funds from a number of providers in New Zealand and find information such as annual return, fund value and any associated fees.