KIWI SAVER
- August 27, 2020
- Posted by: admin
- Category: Kiwi Saver
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Retirement savings scheme / useful for 1st home buyers as well
- OPEN TO ALL NZ CITIZENS/RESIDENTS
- FROM NEW BORNS TO AGE 65
- IF U R UNDER 18,NEED PARENT/GUARDIAN CONSENT
- SHOULD HAVE AN IRD NUMBER
- KICK-START TAX-FREE AMOUNT OF $1,000 FROM THE GOVERNMENT
- AFTER18, GOVT. GIVES TAX CREDITS UP TO $1042 P.A./ $20 WKLYAS LONG AS U CONTRIBUTE $1042 P.A.
- EMPLOYER HAS TO CONTRIBUTE 2% TO MATCH YOUR CONTRIBUTION
- 1ST HOME DEP SUBSIDY AFTER 3 YEARS CONTRIBUTIONS-$1K P.A.
- UP TO $5,000 1ST HOME SUBSIDY AFTER CONTRIBUTING 5 YEARS
- FIRST HOME SAVINGS WITHDRAWAL
- AUTOMATICALLY ENROLLED BY EMPLOYER IF NOT MEMBER
- IF NOT EMPLOYED,U CAN MAKE REGULAR OR LUMP-SUM CONTRIBUTIONS
- IF SELF-EMPLOYED, U CAN STILL ENROL AND MAKE YOUR CONTRIBUTIONS & GET TAX CREDITS UP TO $1042 P.A.
Starting on taxable pay of $45,000, from age 40 until 65:
| Employee KiwiSaver contributions | 2% | 4% | 4% |
|---|---|---|---|
| Total you will have saved at 65 (in nominal dollars) | $202,857 | $275,773 | $418,680 |
| Total you will have saved at 65 (in today’s dollars) | $123,648 | $168,092 | $255,198 |
| Amount you will invest weekly in first year | $17 | $35 | $69 |
| Employer weekly contributions | $17 | $17 | $17 |
| Tax credits in first year (paid on 1 July) | $640 | $742 | $742 |
| Maximum tax credits in future years | $1,043 | $1,043 | $1,043 |
starting on taxable pay of $45,000, from age 30 until 65:
| Employee KiwiSaver contributions | 2% | 4% | 8% |
|---|---|---|---|
| Total you will have saved at 65 (in nominal dollars) | $443,597 | $607,472 | $929,981 |
| Total you will have saved at 65 (in today’s dollars) | $221,811 | $303,753 | $465,016 |
| Amount you will invest weekly in first year | $17 | $35 | $69 |
| Employer weekly contributions | $17 | $17 | $17 |
| Tax credits in first year (paid on 1 July) | $640 | $742 | $742 |
| Maximum tax credits in future years | $1,043 | $1,043 | $1,043 |
Assumptions
- Salaries increase at5% per annum. Your contributions are assumed to increase in line with your pay (for example $200 today will be $230 in 4 years time).
- All contributions are invested in a balanced fund earning a net real return of4% per annum.
- No contributions holidays are taken.
- The one-off government contribution of $1,000 is received 3 months after the first contribution is deducted from your pay.
- Tax credits (for a maximum of $1,042.86) are added to your savings each year.
- This calculator assumes your investments are in a managed fund which is a PIE (Portfolio Investment Entity). Your PIE income is taxed at either 10.5%, 17.5% or 28%, depending on your income.Find out more about PIEs.