Frequently asked questions

Q. How do I join KiwiSaver – 3 ways to join

A.

  1. Automatic enrolment when you start a new job

  2. Opting in through a KiwiSaver provide – You contact a KiwiSaver provider and sign up with them or a KiwiSaver Provider will send you an application form and a product disclosure statement

  3. Opting in through your employer – some employers have preferred KiwiSaver Providers

Note:

  • Once you’ve joined KiwiSaver you cannot opt-out

  • You can apply for a contributions holiday

Q. How will my money be taxed?

A.

The KiwiSaver Scheme is a PIE (Prescribed Investor Entity). Tax deducted will be based on your PIR (Prescribed Investor Rate)

To learn more about PIEs, please follow this link: http://www.ird.govt.nz/toii/pie/

To learn more on PIR, please follow this link: http://www.ird.govt.nz/toii/pir/pir-index.html

Q. How can I get my money out?

A.

  • At retirement (age 65) you’ll get NZ Super as well as your KiwiSaver.

Your options –  You can:

  • Leave your funds invested in KiwiSaver and draw regular amounts (set up direct credits from your KiwiSaver provider)

  • Withdraw all your funds or withdraw part of your funds and leave the balance invested

  • Continue contributing – but you are not eligible for the member tax credits any more

  • Purchase of first home

  • Significant Financial Hardship

  • Serious Illness

  • Permanent emigration (not Australia)

  • Permanent emigration to Australia – your funds will be transferred to an Australian complying superannuation fund

Q. Who holds my money, where does it go?

A.

Your money goes in your KiwiSaver account. Your account is part of a fund managed by a KiwiSaver Provider (not the government). Your KiwiSaver Provider then invests your money into different funds that you choose. Your investment adviser could help you choose – follow this link to find an investment adviser

Q. How can I join KiwiSaver or transfer to another scheme provider?

Q. What is KiwiSaver made up of?

A.

  1. Member contributions (through employer) – you nominate 3%, 4%, 8% or 10%. But you can make voluntary contributions as much as you like on top of the 3%. To do this – You can contact your Scheme provider and set up regular direct debits of an agreed amount OR you can make one-off lump sum contributions by crediting your Scheme providers account through internet banking and your provider will apply this to your account. You have to tell your provider which funds you want these contributions invested in.

  2. Employer contributions – Compulsory 3% but an employer can make voluntary contributions to your account on top of the 3% as agreed in your employment contract

  3. Government contributions – The government contributes $521.43 every July as “Member Tax Credit” if you contribute $1042.86 /year or around $20/week.

  4. Investment returns – KiwiSaver is a “Managed Investment Scheme” (Portfolio Investment Entity – PIE). This means your money will be pooled with other funds and invested in various investments. Your scheme provider has a number of investment options to choose from – your investment adviser, Certus can assist you in selecting the best options for you.

Money going out: (MINUS)

Fees – charged by your scheme provider for managing your account

Taxes – you have to select your correct PIR (prescribed investor rate). This is the rate your scheme provider (or PIE) will use to deduct PIE tax from the income earned from your investment in the PIE

The PIE (Portfolio Investment Entity will pay tax on investment income based on their investors (KiwiSaver members) PIR (prescribed investor rate)

So if you’re contributions earn x amount of income that portion of income earned will be taxed at your PIR (prescribed investor rate) and not at the PIE’s normal tax rate.

Q. I just joined KiwiSaver. How come I don’t see my money in my account?

A.

It takes 3 months for a KiwiSaver contribution to reach your account.

Month 1: At payday employer deducts KiwiSaver contributions from your salary and sends to the IRD around 20th of the month.

Month 2: IRD processes payments together with contribution schedules from employer.

Month 3: IRD transfers contributions to your Scheme Provider including any interest earned once all schedules and payments are checked and processed.

Follow this link to see how your contributions are processed: http://www.kiwisaver.govt.nz/already/track-contrib/contrib-process/

Q. Can I keep track or manage my KiwiSaver account online?

A.

Follow this link to register for My AMP: https://secure.amp.co.nz/wps/portal/sec/Registration

To Log in to My Amp https://secure.amp.co.nz/?intcmp=Ban:Home:Login

With My AMP you can update your personal details, change your username and password, manage your preferences, change your investment mix and manage your contributions.

Q. What happens to my KiwiSaver when I die?

A.

Your KiwiSaver funds will be paid to your estate. If your balance exceeds $15,000 you will need a will to have a probate issued. If your balance is less than $15,000 you KiwiSaver scheme provider can make payments to an authorised person such as your widow, widower, civil union partner or children.

Follow this link to find an investment adviser to assist you.

Q. Can I transfer my Australian Super to KiwiSaver?

A.

To be eligible to transfer your Australian Super, you must have a KiwiSaver account or open a KiwiSaver Account

If your KiwiSaver is not with AMP – transfer to AMP

If with AMP, through another adviser

  • You must have emigrated permanently to New Zealand

  • You must transfer all of your Australian Super fund – partial transfers are not allowed

Forms to Complete:

  1. Obtaining Information- Australian Complying Super Fund Form

  2. Authority to Act Declaration form – Australian Complying Super Fund

Note: It could take around 2-3 months for your Australian Super to process the transfer into your KiwiSaver