This is about advertisment for kiwisaver and how it could prepare you for your future!!
KiwiSaver
The basic equation for your KiwiSaver is simple.
The fund consists of contributions made by you, the government, and your employer, plus or minus investment returns, minus any withdrawals you make, and finally any fees or taxes that apply.
For most members, KiwiSaver is work-based, meaning their contributions are taken directly from their pay.
You can easily adjust your work contributions with the help of your employer, selecting to contribute either 3 percent, 4 percent, or 8 percent of your income.
If you’re not working for an employer, you can contact a provider instead, and decide to pay contributions directly to them, after agreeing on an amount.
Any KiwiSaver member, work-based or not, needs a provider. These are the private companies that manage the schemes available to you, and are in charge of the second part of the equation above – the investment returns.
It’s important to keep in mind that KiwiSaver is not guaranteed by the Government, which means the choices you make about which provider to invest with are made at your own risk.
Many people tend to focus on the fees associated with a scheme, but paying close attention to the investment portion of your KiwiSaver will ensure that it’s working best for you.
So what about the third part of that equation, withdrawals? In most cases, you won’t be able to make any until you turn 65, the required age for NZ.
There are a few conditions that may allow you to make a withdrawal, including buying your first home, permanently leaving the country, or suffering serious financial or health difficulties.
