The Government has made some changes to KiwiSaver that include:
- Introducing more contribution rate options for employees (from 1 April 2019)
- Reducing the maximum period for ‘contribution holidays’ (from 1 April 2019)
- Allowing people over 65 to join (from 1 July 2019).
More contribution rates for employees.
From 1 April 2019, it’s intended that you’ll also be able to contribute at 3%, 4%, 6%, 8% and 10% of your pay. 6% and 10% rates are the new options. Perhaps review your level of contributions when you receive a pay increase, it’s a great time to take the opportunity to save a little more.
Savings suspension timeframe reduces
‘Contribution holiday’ is now called ‘savings suspension’ and the maximum period for savings suspensions reduces from 5 years to 1 year. You need to apply directly to Inland Revenue each year to renew a savings suspension.
If you’re not making personal contributions to your KiwiSaver then you may also be missing out on the government’s contributions of up to $521.43 each year. That can add up to a lot over time, e.g. potentially $5,214.30 over 5 years. See the above article to check out how to qualify for the ‘free’ Government money.
Removing the age 65 restriction on joining
From 1 July 2019, the age 65 restriction on joining is removed and this group of New Zealanders (and permanent residents) will be able to join a KiwiSaver. The 5-year lock-in period on joining is also removed. There is no change to the age at which you qualify to withdraw your KiwiSaver savings, this remains age 65.
This provides a convenient and cost-effective investment option to just holding all your savings in a bank account or on fixed deposit.
Tell your friends and family about Christian KiwiSaver Scheme. They may be interested in joining and investing in a KiwiSaver scheme that is invested under an ethical investment policy and Christian values