Hawkes Bay Today
  • Hawke's Bay Today home
  • Latest news
  • Sport
  • Business
  • Opinion
  • Lifestyle
  • Property
  • Video
  • Death notices
  • Classifieds

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • On The Up
  • Sport
  • Business
  • Opinion
  • Lifestyle
  • Property
    • All Property
    • Residential property listings
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology

Locations

  • Napier
  • Hastings
  • Havelock North
  • Central Hawke's Bay
  • Tararua

Media

  • Video
  • Photo galleries
  • Today's Paper - E-Editions
  • Photo sales
  • Classifieds

Weather

  • Napier
  • Hastings
  • Dannevirke
  • Gisborne

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Hawkes Bay Today / Business

Shelley Hanna Government KiwiSaver incentives

By SHELLEY HANNA
Hawkes Bay Today·
1 Nov, 2011 12:21 AM3 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article


KiwiSaver is like a bank account in your own name, looked after by a fund manager and a trustee.

QUESTION:I haven't joined KiwiSaver because I don't trust the Government. Why should I join if they can keep changing the rules?

ANSWER: KiwiSaver is governed by the KiwiSaver Act 2006. Changes are not made lightly. Some changes might improve the scheme while others might make it less attractive. If you join and then decide it's not for you, you can take a contributions holiday any time after 12 months (or earlier if you're experiencing financial hardship). The self-employed have even more flexibility and can stop and start as they wish.

The Government has provided strong cash incentives for people to join and membership has exceeded their expectations. Those savers who have been in KiwiSaver from the start have received up to $5168 from the Government, if they have been saving at least $87 a month themselves. That money from the Government - the "kickstart" and annual tax credits of up to $1042 - has gone into their KiwiSaver accounts. In most cases, it will stay there increasing in value until they can access it at age 65 (or after five years if they joined after age 60). Even though the tax credit has been reduced to $521 per year, KiwiSaver is still a generous scheme.

There are now around 1.8 million New Zealanders signed up to KiwiSaver. The largest group of KiwiSaver members is children (age 0-17) with nearly 300,000 (as at March 31, 2011 - according to the official KiwiSaver website). So a large number of New Zealand parents and grandparents have made the decision on behalf of their children, to get the $1000 kickstart. The second largest group is the 55+ age group, whose retirement is fast approaching.

The "sorted" website is a great place to start if you want to do some sums on KiwiSaver. It has two very useful calculators: one shows how much you will save if you join KiwiSaver and another one allows you to compare the fees of the various providers.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

Those who say that they don't trust the Government may think that their savings will somehow be taken away from them. This will not happen. The Government does not have access to KiwiSaver accounts. The Government can put money in (via Inland Revenue) but they cannot take money out. KiwiSaver is like a bank account in your own name, looked after by a fund manager and a trustee. You choose the type of fund, from low risk to high. KiwiSaver is highly regulated. You will get regular statements from your fund manager. You can sign up for regular informative email updates. You can view your account balance online with a user name and password.

If you are still not convinced, talk to friends who are in KiwiSaver and find out if they are happy with their savings. They might just provide the motivation you need to sign up.

Shelley Hanna is an authorised financial adviser FSP12241. Her disclosure statement is available on request and free of charge by calling 8703838. The information contained in this article is of a general nature and is not intended to provide specific or personalised advice. www.peak.net.nz or email shelley.hanna@peak.net.nz.

Advertisement
Advertise with NZME.
Save

    Share this article

Latest from Business

Premium
Opinion

Nick Stewart: What if you die with a big KiwiSaver balance?

30 May 08:43 PM
Hawkes Bay Today

'She is not going to prison': Woman avoids jail after cousin's fatal mattress fall from car roof

26 May 07:00 AM
Premium
Hawkes Bay Today

KiwiSaver changes 'a burden' for small businesses and self-employed

22 May 08:00 PM

Why Cambridge is the new home of future-focused design

sponsored
Advertisement
Advertise with NZME.

Latest from Business

Premium
Nick Stewart: What if you die with a big KiwiSaver balance?

Nick Stewart: What if you die with a big KiwiSaver balance?

30 May 08:43 PM

OPINION: How to spare your family pain in accessing the funds at a time of suffering.

'She is not going to prison': Woman avoids jail after cousin's fatal mattress fall from car roof

'She is not going to prison': Woman avoids jail after cousin's fatal mattress fall from car roof

26 May 07:00 AM
Premium
KiwiSaver changes 'a burden' for small businesses and self-employed

KiwiSaver changes 'a burden' for small businesses and self-employed

22 May 08:00 PM
Premium
Liam Dann: Upbeat Treasury forecasts GDP growth, rising house prices

Liam Dann: Upbeat Treasury forecasts GDP growth, rising house prices

22 May 05:39 AM
Clean water fuelling Pacific futures
sponsored

Clean water fuelling Pacific futures

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • Hawke's Bay Today e-edition
  • Manage your print subscription
  • Manage your digital subscription
  • Subscribe to Herald Premium
  • Subscribe to the Hawke's Bay Today
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • Hawke's Bay Today
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • What the Actual
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven CarGuide
  • iHeart Radio
  • Restaurant Hub
NZME
  • NZME Events
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • © Copyright 2025 NZME Publishing Limited
TOP