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How KiwiSaver works
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KiwiSaver is a voluntary, long-term savings initiative to help you prepare for your future. Here are some of the finer details you may need to know.
Join or transfer to Westpac KiwiSaver Scheme.
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| Who is eligible for KiwiSaver? |
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| To be eligible for KiwiSaver you must be: |
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a New Zealand citizen or entitled to live in New Zealand indefinitely |
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living or normally living in New Zealand |
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under the qualification age for New Zealand Superannuation (currently 65). |
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| How do I join KiwiSaver? |
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| If you are eligible, you can join KiwiSaver by either: |
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choosing to join at any time (either by advising your employer or contacting a scheme provider directly), or |
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being automatically enrolled when starting new employment if you’re 18 years or over. |
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read the Westpac KiwiSaver Scheme Investment Statement, which contains important information about the investment |
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complete and sign the application form included at the back of the Investment Statement |
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return your completed application form to your nearest Westpac Branch, or post it to The Westpac KiwiSaver Scheme, P O Box 695, Wellington. |
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if you don’t have a Westpac bank account, we will also need some identification (see application form for details) |
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remember you can consult a Westpac investment adviser for advice in relation to the Westpac KiwiSaver Scheme. Please phone 0508 WPAC KIWI (0508 972 254) to organise an appointment with a Westpac investment adviser. |
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| If you are automatically enrolled when you start new employment, the Inland Revenue Department (IRD) will allocate you to: |
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your employer's chosen scheme (if they have one), or |
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a default KiwiSaver scheme. |
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| You can opt out of KiwiSaver between week 2 and week 8 of commencing new employment if you have been automatically enrolled by your employer. You can choose to transfer to another KiwiSaver scheme at any time. |
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> What happens after I join?
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| Once we receive your completed application, we’ll let IRD know you have chosen the Westpac KiwiSaver Scheme. |
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| If you earn a salary or wage, IRD will ask your employer to start deducting contributions from your salary or wage. If you are over 18 and eligible for compulsory employer contributions, your employer will also start contributing to your KiwiSaver account. |
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| IRD will hold your contributions for 3 months after receiving your first contribution. Contributions will then be transferred to your KiwiSaver scheme together with any interest. |
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| If you’re self-employed or not currently working you can make regular payments to the Westpac KiwiSaver Scheme through direct debit from your bank account or lump sum payments. |
> How do I opt out of KiwiSaver?
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| Only new employees who are automatically enrolled by their employer (either into a KiwiSaver scheme chosen by their employer or to one of the government appointed default schemes) can opt out of KiwiSaver between week 2 and week 8 of commencing new employment. |
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| If you choose to join KiwiSaver by completing an application form or advising your employer, you won’t be able to opt out at a later date. |
> How much do I contribute to KiwiSaver from my salary or wages?
> How much will my employer contribute to KiwiSaver?
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| If you’re employed and contributing, from age 18 until you can withdraw your KiwiSaver savings on retirement, your employer will generally be required to contribute 2% of your gross salary or wages to KiwiSaver. The Government intends that the compulsory minimum employer contribution rate will increase to 3% from 1 April 2013. |
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| From 1 April 2012, employer contributions to KiwiSaver will have employer’s superannuation contribution tax (ESCT) deducted from them before they are credited to your KiwiSaver account – ESCT is usually the same as or less than a person’s marginal tax rate. |
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| Your employer may also make voluntary contributions to your KiwiSaver scheme on your behalf. All employer contributions must be made through IRD. |
> When can I withdraw my KiwiSaver savings?
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| Your savings are generally ‘locked in’ until you reach the New Zealand superannuation qualification age (currently 65) or until you have been a member of a KiwiSaver scheme (or a complying superannuation fund) for at least 5 years—whichever is the later. |
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| You can apply to make an early withdrawal in certain circumstances, including: |
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the purchase of a first home |
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significant financial hardship |
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serious illness |
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permanent emigration from New Zealand |
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where required by statute or upon death. |
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| Some early withdrawals may exclude the Government kickstart contribution and member tax credits. |
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| > download Westpac KiwiSaver Scheme Investment Statement for information on withdrawal rules |
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| File won't open? You'll need Adobe Reader. |
> How do I make contributions to the Westpac KiwiSaver Scheme if I’m not earning a salary or wages?
> How do I transfer to the Westpac KiwiSaver Scheme?
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| All you need to do is complete the application form, including the section titled ‘Transfers’, and return the form to your nearest Westpac Branch, or post it to The Westpac KiwiSaver Scheme, P O Box 695, Wellington. We’ll do the rest for you. This process takes around 30 days and we may need to contact you for further information. |
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| > download Westpac KiwiSaver Scheme Investment Statement and application form |
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The information above is based on information current at the time of writing and from sources Westpac believes to be accurate and reliable as at July 2011 and is subject to changes to government policy and law, and changes to the Westpac KiwiSaver Scheme from time to time (as referred to in the investment statement). The material on this website is provided for general information purposes only and is not a recommendation or opinion in relation to the Westpac KiwiSaver Scheme. You should not rely solely on the information on this website. We recommend that you consult a Westpac investment adviser if you would like advice in relation to the Westpac KiwiSaver Scheme.
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Investments made in the Westpac KiwiSaver Scheme do not represent bank deposits or other liabilities of Westpac Banking Corporation ABN 33 007 457 141, Westpac New Zealand Limited or other members of the Westpac group of companies. They are subject to investment and other risks, including possible delays in payment of withdrawal amounts in some circumstances, and loss of investment value, including principle invested. None of BT Funds Management (NZ) Limited, any member of the Westpac group of companies, The New Zealand Guardian Trust Company Limited, or any director or nominee of any of those entities, or any other person guarantees the Westpac KiwiSaver Scheme’s performance, returns or repayment of capital. |
Disclosure Statements for Westpac investment advisers are available on request and free of charge from any Westpac investment adviser.
The information on this page is presented subject to our legal page and any other terms and conditions that Westpac may impose from time to time. It is subject to change without notification.
| Copyright©2011 Westpac New Zealand Limited |
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