Seven reasons to join KiwiSaver
Why join KiwiSaver?
- $1,000 kick start contribution will be credited to your account when it is opened
- The government will help by matching your contributions with a tax credit of up to $20 per week ($1,040 per year)
- Matching employer contributions of up to 4% of salary, phased in over 4 years
- You can receive employer contributions tax free , up to 4% of salary. The tax exemption can significantly boost savings over time.
- Housing New Zealand will offer a first home buyers subsidy up to $5,000 to KiwiSaver members, based on $1,000 for each year of membership. The subsidy will be offered for each year of membership. The subsidy will be offered to members who have been saving through Kiwisaver for three years, subject to a cap on income and house price levels.
- With Mortgage Diversion, after one year you will be able to divert up to half of your 4% or 8% contribution rate to go towards mortgage payments over your home.
- The government will offer you a fee subsidy of $40 per year for towards the costs of administering your KiwiSaver account
What is KiwiSaver?KiwiSaver is a work-based savings scheme which is voluntary to join, but compulsory for employers to facilitate. It’s an easy way to save, with contributions being deducted directly from salary at a rate of either 4% or 8%. With the significant benefits that the government has put in place for KiwiSaver members, many New Zealanders will benefit from opting in.