Have you heard about the changes to KiwiSaver – well listen up as they could help you reach your saving goals faster! As we all know, KiwiSaver is a great way to save for your retirement or first home deposit. There are some exciting changes happening that could help you lift your savings which include new contribution rates & shorter saving breaks. Interested?!
New Contribution Rates:
From 1st April 2019, you’ll be able to put 6% or 10% of your salary into KiwiSaver, as well as the existing options of 3%, 4% or 8%.
Your employer contributions will remain at 3%, unless your employer has agreed to a greater amount.
Increasing your Kiwisaver contribution a little, could help make a big difference in the future and assist you in reaching your saving goals faster.
Shorter savings break:
If the situation arises where you need to pause your Kiwisaver, you can apply for a ‘savings suspension’. At the moment, this can be up to five years, but from 1 April 2019, the maximum period will change to 12 months. This will encourage you to restart your saving sooner.
1 July 2019
More options for over 60's
People over age 65 will be able to opt-in to KiwiSaver, giving them an additional managed fund choice during retirement.
People joining KiwiSaver from 1 July will not have a lock-in period, all new members will be able to withdraw their funds from their 65th birthday (currently people joining between 60 and 65 years old are locked into KiwiSaver for 5 years). The qualifying age for people who transfer to KiwiSaver from complying superannuation funds which they joined prior to 1 July 2019, will be the later of NZ Super age or 5 years after they joined the complying superannuation fund. Customers who joined prior to this change retain their lock-in period.
1 April 2020
Locked in members have the option to withdraw KiwiSaver funds. From 1 April 2020, members who have a lock-in period will be permitted to withdraw KiwiSaver funds from age 65. However, from the date of first withdrawal they will lose eligibility to any future entitlements to government and compulsory employer contributions.
If you require any further information please contact Amicus
+64 3 943 4108
196 St Asaph Street
PO Box 5507 Papanui
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