KiwiSaver in Action
Over 1,200,000 New Zealanders have recognised the compelling story that is KiwiSaver. There is no certainty that all the current Government incentives to join will be available in the future. It has never been easier to obtain up to
$2,043† from
the Government.
The tables below are calculated using the current minimum member contribution of
2% of your gross salary or wages. .
Consider how the Government incentives will accelerate your savings*
Gross
earnings
|
Your
annual
contribution
(at 2%)
|
Employer's
contribution
(year one)
§
|
Government
contribution
- kick-start
|
Government
member
tax credit
|
Total
contributions
year one
§
|
Your
contribution
year one
§
|
% Return
on top of your
contribution
|
|
$40,000
|
$800
|
$800
|
$1,000
|
$800.00
|
$3,400.00
|
$800
|
325%
|
|
$50,000
|
$1,000
|
$1,000
|
$1,000
|
$1,000.00
|
$4,000.00
|
$1,000
|
300%
|
|
$60,000
|
$1,200
|
$1,200
|
$1,000
|
$1,042.86
|
$4,442.86
|
$1,200
|
270%
|
|
$70,000
|
$1,400
|
$1,400
|
$1,000
|
$1,042.86
|
$4,482.86
|
$1,400
|
246%
|
|
$80,000
|
$1,600
|
$1,600
|
$1,000
|
$1,042.86
|
$5,242.86
|
$1,600
|
228%
|
|
$90,000
|
$1,800
|
$1,800
|
$1,000
|
$1,042.86
|
$5,642.86
|
$1,800
|
213%
|
|
$100,000
|
$2,000
|
$2,000
|
$1,000
|
$1,042.86
|
$6,042.86
|
$2,000
|
202%
|
† Kick-start $1,000 + full benefit of member tax credit $1,043. Certain eligibility criteria apply. Please refer to the Investment Statement for more information.
*Return is expressed as the percentage gain arising from the Employer’s contribution, Government contribution and tax credit relative to your contributions in the first year. Assumes zero investment return.
§ Year one - this assumes your first year of membership in a Kiwisaver scheme was from 1/4/09 to 31/3/10.
The price of indecision
There is no certainty
that all the current incentives to join will be available into
the future. What we do know is that delaying is costly. In the
table below (‘The Price of Indecision Over Time’) we demonstrate the value of the $1,000 kick-start and an annual
maximum member tax credit ($1,043) over time. All these sums are
in today’s money, but could they add to a more comfortable
retirement for you? In addition, don’t forget that as an
employee, your employer will also contribute 2% of
your gross salary or wages to KiwiSaver .
The price of Indecision Over Time*
| Year |
Dollar Value |
| 1 |
$2,043 |
| 5 |
$6,979 |
| 10 |
$14,670 |
| 20 |
$37,014 |
| 30 |
$73,412 |
Investing in your family’s future — grab the grand
($1,000) while you can
If you have children or are a grandparent,
KiwiSaver presents opportunities to help secure the financial
future of your dependents and loved ones.
Anyone under the age of 18 can access the
initial kick-start contribution of $1,000. Over time the $1,000 alone can grow into a substantial sum as the
table below (‘What the $1,000 Kick-start Can Grow To Over Time’) demonstrates. In addition there are currently
a number of incentives to assist our future generation access
the housing market in years to come. The Forsyth Barr KiwiSaver
Scheme has no requirement for an initial minimum contribution
and has very accessible minimum payments of $100 after joining, making it
easy to invest in your family’s financial future.
What the $1,000 Kick-Start Can Grow to Over Time*
| Year |
Dollar Value |
| 10 |
$1,551 |
| 20 |
$2,527 |
| 30 |
$4,116 |
| 40 |
$6,705 |
| 50 |
$10,921 |
| 60 |
$17,790 |
| 65 |
$22,705 |
Retirement is just around the corner - is it worthwhile?
If you are approaching retirement and can
afford to save 2% of your earnings then yes, KiwiSaver is
definitely worthwhile. In the table below (‘Your Contributions and the Impact
of Incentives’) we
demonstrate the benefit of five years of savings in KiwiSaver
comparing your contribution with the potential sum that can
result. And if you have retired but are under 65, remember you
can still join KiwiSaver and access the $1,000 kick start. In addition, if you make lump sum or regular
contributions, you may be able to access the maximum member tax
credit of $1,043.
Your Contributions and the Impact of Incentives*
| Gross earnings |
Your contribution
at 2% |
Savings after five years |
| $40,000 |
$4,000 |
$15,200.87 |
| $50,000 |
$5,000 |
$18,682.02 |
| $60,000 |
$6,000 |
$21,251.46 |
| $70,000 |
$7,000 |
$23,572.22 |
| $80,000 |
$8,000 |
$25,892.99 |
| $90,000 |
$9,000 |
$28,213.75 |
| $100,000 |
$10,000 |
$30,534.52 |
*These results are illustrative only and based on a 5% p.a. compounding return and after the deduction of any fees, or expenses. They are not a guarantee of future performance, or a reflection of any return you may receive from the Forsyth Barr KiwiSaver Scheme. You should work with your Investment Advisor to calculate your savings based on your own personal situation and investment objectives.
These examples do not take into account any tax. Tax in the Forsyth Barr KiwiSaver Scheme is deducted at your Prescribed Investor Rate.
Any tax deducted will affect the returns shown. You may choose
to make contributions at 2%, 4% or 8% of
your gross salary or wages including bonuses, overtime and
similar payments.
Forsyth Barr KiwiSaver Scheme – it’s all about choice
Take the Next Step – find out more or apply now
|
