News | Personal Finance
29 Mar 2024 6:10
NZCity News
NZCity CalculatorReturn to NZCity

  • Start Page
  • Personalise
  • Sport
  • Weather
  • Finance
  • Shopping
  • Jobs
  • Horoscopes
  • Lotto Results
  • Photo Gallery
  • Site Gallery
  • TVNow
  • Dating
  • SearchNZ
  • NZSearch
  • Crime.co.nz
  • RugbyLeague
  • Make Home
  • About NZCity
  • Contact NZCity
  • Your Privacy
  • Advertising
  • Login
  • Join for Free

  •   Home > News > Business > Features > Personal Finance

    Get your KiwiSaver decision Sorted

    One of the things on the ‘to do’ list of many New Zealand workers this year will be deciding whether or not to join KiwiSaver.

    You’ve probably heard about the government incentives like a $1,000 kick start to your savings, and the up-to $1040 annual ‘tax credits’. But there are also the employer contributions to consider.


    Every time you’re paid, either 4% or 8% (you select the amount) of your before-tax pay will be deducted from your take-home pay and sent to your KiwiSaver account.

    From April this year, your employer has to match your contributions to KiwiSaver starting with a minimum of 1% of your pay, and increasing by 1% each year until it reaches 4% in April 2011. (Your employer may also contribute more than these amounts.)

    Or if your employer agrees to match it, you can start with a 2% contribution from your pay, increasing that over time, until you and your employer are both contributing 4%.

    If you can afford it, and you don’t mind the funds being locked in until you’re 65, or older, then KiwiSaver could provide an easy and affordable way to save for your retirement. Keep in mind that KiwiSaver won’t suit everyone. There are other savings options which may be more flexible and work better for you.

    If you do decide to join KiwiSaver, another decision you will need to make is where your money is invested.

    If you prefer, you can choose the provider your KiwiSaver funds are sent to and the type of investment option for your savings. If you would rather not choose, your employer may have a preferred provider they’ll send the money to, or the government will select one for you.

    To help New Zealanders with the complicated task of working out which KiwiSaver fund is most suitable for them, a new KiwiSaver fees calculator has been added to the Retirement Commission’s website sorted.org.nz. This provides an independent estimate of KiwiSaver fees to help you make a more informed decision on which KiwiSaver provider and fund to choose.

    Note that it is important to not look at estimated fees in isolation when choosing a KiwiSaver provider. The level of risk (and associated return), service level and communication offered by the fund provider should also be considered.

    The new KiwiSaver fees calculator is one of a range of KiwiSaver decision-making tools on sorted.org.nz, your independent money guide.

    © 2024 Sorted.org.nz, NZCity

     Other Personal Finance News
     10 Sep: Spring clean your finances
     13 Aug: Plan ahead to give yourself a debt-free Christmas!
     10 Jul: Wise up to clear credit card debt
     07 May: Ways to prepare for the unexpected
     30 Mar: Time for a financial progress check
     10 Feb: Studying up on NZ Super
     10 Jan: Managing the back-to-school bills
     Top Stories

    RUGBY RUGBY
    The Crusaders' struggles to start Super Rugby have drawn concern from Chiefs coach Clayton McMillan More...


    BUSINESS BUSINESS
    Another pay offer is on the table for Police - after union members labelled the last one insulting More...



     Today's News

    Business:
    Another pay offer is on the table for Police - after union members labelled the last one insulting 5:17

    Law and Order:
    A person's dead and another in hospital after a violent incident at a sushi shop in Auckland's Browns Bay 5:07

    Entertainment:
    Lily Allen was introduced to Mila Kunis and Ashton Kutcher as Rita Ora - and was too mortified to disclose who she really was 21:53

    Entertainment:
    Mel B's fiance visited her father's grave to "ask permission" to propose to her 21:23

    Accident and Emergency:
    State Highway 6 is blocked by a serious crash, South of Lake Paringa in the South Island's Tasman region 21:17

    Accident and Emergency:
    State Highway One is has now reopened between Kaikoura and Riverlands - after a two-vehicle collision at Kekerengu, north of Kaikoura, this morning 21:17

    International:
    Shopper swallowed as shopping mall floor collapses in eastern China 21:07

    Entertainment:
    Kris Jenner won't spend quality one-on-one time with her grandchildren because it would cost her too much time and money 20:53

    Entertainment:
    Halle Berry's perimenopause symptoms were mistaken for herpes 20:23

    Entertainment:
    Keke Palmer wants 10 kids 19:53


     News Search






    Power Search


    © 2024 New Zealand City Ltd