Here at Diligent Wealth we have all the answers to commonly asked questions, our experts have the knowledge to inform on any query you may have. If you can't find an answer below then please get in touch here.
What is Kiwisaver?
Kiwisaver was set up by the government to help encourage New Zealanders to save for retirement. By putting away regular contributions it will help build a nest egg to assist with your retirement goals, if you would like help with a plan to achieve those retirement goal then we are experts. Get in touch here.
Do I have to join Kiwisaver?
No, Kiwisaver participation is voluntary. Speak to us at Diligent Wealth as we have a range of other investment options that may help in reaching your retirement goals or personal circumstances better.
What is my PIR?
To calculate you PIR, click here.
Can I make voluntary contributions?
Yes, you can make regular voluntary contributions, however you will not be able to access this money until retirement age or under special circumstances. Talk to us here at Diligent Wealth as we have a range of other suitable investment options that will give you more flexibility with your investment goals.
What’s the minimum I have to invest to join Kiwisaver?
There is no minimum initial investment required, but if you are enrolled in a Kiwisaver scheme and employed then the minimum contribution amount is 3% of your gross salary or wages.
How much does my employer have to contribute?
Your employer has to contribute at least 3% of your gross earnings on top of your normal pay unless they are paying into another eligible scheme for you, under 18 or over the age of eligibility.
What will the government contribute?
Government contributions are a great way to build on your Kiwisaver funds, to be eligible the current rules are that you have to invest at least $1,042.86 between 1 July and 30 June each year. The government will then put $521.43 into your Kiwisaver account.
What if I am self-employed or not employed, can I still have a Kiwisaver and get the government contributions?
No matter what your work situation, if you are eligible and make regular contributions to your KiwiSaver, you will get Government contributions every year.
If you are employed, earning over $35,000 before tax and contributing at least the minimum 3% of your pre-tax salary or wages to your KiwiSaver account, then you’re likely to receive the maximum Government contributions for the year.
If you are self-employed or not working and contribute as you can to the minimum $1042.86 (which is only as little as $20.50c a week) per year you will be eligible to get the full $521.43 from the Government.
How old do I have to be to access my Kiwisaver for retirement?
When you turn 65 you become eligible to make partial or full withdrawals.
Can I access my Kiwisaver before I retire or reach 65?
Kiwisaver is set up for retirement but there are some circumstances where early withdrawals may be allowed. Some examples are your first home purchase, financial hardship or serious illness. Depending on your circumstances we can help determine if an early withdrawal would be allowed.
Can I switch Kiwisaver providers?
Yes, you can change providers quite easily. As there is a multitude of providers out there, Diligent Wealth have the knowledge and experience to help you make the right decision of where your Kiwisaver funds will work best for you.
Can I split between Kiwisaver providers?
Currently you can only be a member of one Kiwisaver Scheme at any time. To avoid concentration risk or if an investment manager of one of the schemes is underperforming and depending on your personal circumstances we recommend having other investments which you can contribute to, as financial advisers it’s how job to help find the best investment option for your situation and goals. Get in touch with us today and find out how your money can work harder for you here.
What are the fees?
Fees can vary between providers, we can help recommend which Kiwisaver Scheme is best for your personal circumstances.
What if I am in a position of financial hardship?
Under certain circumstances you will be able to access a partial withdrawal of your Kiwisaver funds if you meet certain criteria.
How often do I receive updates?
No matter what Kiwisaver Scheme you invest in, they are required to give you quarterly updates. These updates will include things like how the fund has performed, fees and the top 10 investments.
Should I check my investment fund balance daily?
Your welcome to check your fund balance daily and all of our recommended providers have an online portal for access at any time. However, due to the nature of investments your funds can fluctuate on a day to day basis and since the funds are not able to be accessed until you are of retirement age we don’t recommend it. If you want to look at alternative investment options where you can access your funds at any time then get in contact with us here.
What will I have when I retire?
There are some handy online Kiwisaver calculators which can be found here.
How do I know how the fund I am invested in is performing?
The Kiwisaver Scheme you invest in is required to give you quarterly reporting. At Diligent Wealth we keep track of how all of the Kiwisaver funds are performing and can assist in making sure you are in the right fund for your personal circumstances. Get in touch here.