Below are some of the most frequently asked questions about KiwiSaver in general.
- What is a default KiwiSaver scheme?
- What rate of return will I get on my KiwiSaver savings?
- Where can I find more information about KiwiSaver?
- Can I join KiwiSaver?
- Who can't join KiwiSaver?
- Can I transfer my savings in an existing superannuation scheme into a KiwiSaver scheme?
- Can I join more than one KiwiSaver scheme?
- Can I change KiwiSaver schemes at any time?
- How do KiwiSaver contributions work if I have more than one employer?
- How are payments credited to my KiwiSaver account?
- Can I get my money out?
- When do I get the Government contributions to my KiwiSaver scheme?
What is a default KiwiSaver scheme?
Individuals who are automatically enrolled or opt into KiwiSaver and do not select a scheme (and whose employer has not chosen an Employer's Chosen KiwiSaver Scheme) will be allocated to one of six default schemes by Inland Revenue. The six default KiwiSaver scheme providers were selected by the Government on a range of factors including investment experience. The ASB KiwiSaver Scheme is a default KiwiSaver scheme.
What rate of return will I get on my KiwiSaver savings?
The rate of return on your KiwiSaver savings is dependent on a number of things including the type of assets your KiwiSaver scheme is invested in, general market conditions and the rise and fall in value of the assets in which your KiwiSaver savings are invested in. There are short-term figures illustrating returns to investors available for the ASB KiwiSaver Scheme, however it is important to be aware that historical returns to investors and forecasts of future returns to investors are not a guarantee of how an investment fund will actually perform. As an investor you may experience short-term losses, but you should look to choose an investment fund that best suits your needs to help you reach your retirement savings goal.
Where can I find more information about KiwiSaver?
You can find more information at:
- www.kiwisaver.govt.nz (for information about KiwiSaver)
- www.sorted.org.nz (for information about saving and investing)
- www.hnzc.govt.nz (for information on the first home buyers deposit subsidy)
Can I join KiwiSaver?
Almost all New Zealanders aged 18 to 64 starting new employment will be automatically enrolled in KiwiSaver (there are some exceptions). If you do not wish to join, you can opt-out between the end of the second and eighth weeks of starting employment by telling your employer (or Inland Revenue). If you are an existing employee or aged under 18, you will not be automatically enrolled in KiwiSaver, but you can choose to join at any time. If you are self-employed or not currently in paid employment, you can also join (but you will pay your contributions directly to your chosen KiwiSaver scheme).
Who can't join KiwiSaver?
You cannot join KiwiSaver if you have reached the age of eligibility for New Zealand Superannuation (currently age 65) or do not meet the citizenship and residency requirements. People who hold temporary, visitor or student permits cannot be KiwiSaver members.
Can I transfer my savings in an existing superannuation scheme into a KiwiSaver scheme?
If you have savings in an existing superannuation scheme you will need to check with your existing superannuation scheme provider whether you are able to transfer your savings to a KiwiSaver scheme.
Can I join more than one KiwiSaver scheme?
No, you can only be a member of one KiwiSaver scheme at a time.
Can I change KiwiSaver schemes at any time?
Yes, currently there are no restrictions on how often you can change schemes. Some providers may charge you a fee to transfer, the ASB KiwiSaver Scheme does not.
How do KiwiSaver contributions work if I have more than one employer?
If you have more than one employer you will be able to choose to join KiwiSaver and make contributions from any or all of your jobs. However, if you start a new job within 12 months of joining KiwiSaver, you will need to make contributions from your salary or wages for that job. After contributing to a KiwiSaver scheme for 12 months, you can apply for a contributions holiday from any or all of your jobs.
How are payments credited to my KiwiSaver account?
Your employer will deduct your contributions from your salary or wages and send them, along with any employer contributions, to Inland Revenue. Inland Revenue will then send these contributions to your KiwiSaver scheme provider.
When you first join KiwiSaver, Inland Revenue will hold all contributions you make to KiwiSaver for a period of three months while you decide which KiwiSaver scheme you want to join. After this three month period, your contributions will be paid, with interest, to your KiwiSaver scheme. If you want more information about the whereabouts of your contributions before they get to your KiwiSaver scheme, you can register at www.kiwisaver.govt.nz to track your contributions through Inland Revenue.
Can I get my money out?
Your savings in a KiwiSaver scheme are locked-in until the age of eligibility for New Zealand Superannuation (currently age 65) or for five years from the date of joining (whichever is later). Early withdrawal of KiwiSaver funds is only allowed in limited circumstances such as permanent emigration, significant financial hardship, serious illness or for a first home purchase. Depending on the type of withdrawal, this may exclude the Government kick-start and member tax credits. There are specific criteria for any withdrawal, requiring supporting information to be provided. Find out more here
When do I get the Government contributions to my KiwiSaver scheme?
Inland Revenue will pay the $1,000 kick-start contribution to your KiwiSaver scheme as soon as possible three months after you join. Your KiwiSaver provider applies to Inland Revenue for the member tax credits soon after 30 June each year.
Why choose us?
Find out more about the ASB KiwiSaver Scheme: