Self-employed

If you're self-employed you get to enjoy all the benefits of KiwiSaver except the employer contributions, plus you even get a little more flexibility over your contribution amounts. If you are self-employed and pay yourself a salary or wages (salary or wages is as defined in the KiwiSaver Act and includes most employment-related income that is subject to the PAYE tax regime) you may be treated as an employee and employer for the purposes of KiwiSaver contributions.

Is it worth it?

Contributing just $1,042.86 each year will mean that you receive a member tax credit of $521.43. This is the maximum the Government will contribute each year, so if you contribute less or are not eligible for the full year they will contribute less. They will pay this from age 18 until when you are eligible to take out your end KiwiSaver retirement savings if you mainly live in New Zealand. You also get the $1,000 kick-start contribution when you first join KiwiSaver and can take advantage of the first home buyers' benefits if you are eligible.

Over 20 years of contributing $1,042.86 each year:

• You will have contributed about $20,850.
• The Government will have contributed about $11,425.
• Giving you around $32,275 in total before any investment returns are calculated.

What do I have to contribute?

Self-employed KiwiSavers have a lot of flexibility around their contributions. You aren't required to contribute a percentage of your salary or wages. Instead you can agree your contribution level with your KiwiSaver provider.

With the ASB KiwiSaver Scheme there are currently no minimum or maximum contribution levels, so you can choose how much and when you want to contribute. Just remember in order to get the $521.43 in member tax credits each year you need to be eligible for the full year and contribute $1,042.86 yourself each year. You can do this by making a lump sum payment once a year or setting up a regular payment via direct debit to spread the contributions throughout the year.

How do I join?

You need to request the Investment Statement for a KiwiSaver scheme of your choice and complete the enrolment form. Get the ASB KiwiSaver Scheme Investment Statement here.