Is KiwiSaver A Good Idea For You?
Here is my experience with Kiwi Saver. I hope it may Help you to make a decision if you are starting a new job an need to decide on KiwiSaver or if you are considering joining
My Past Years of KiwiSaver Condensed.
I joined this scheme from day one. There were people in my life who had a hand in accounting and in their opinion, back then was that you were silly not to go for it and take advantage of the startup and top up on offer.
Being on a low income already and struggling to save I decided if this would inforce some saving in my life then why not do it. I have honestly never missed the money deducted into my Kiwi Saver each week and I have to say I was also amazed at how fast the balance went up.
Back at the start you would start with a 1000 kick start so already this was a winner. Back then you also got a good sized tax credit depending on how much you contributed over the year. These were definitely the major draw cards to the scheme and the offer is not as attractive after changes made today however in saying that I still believe joining KiwiSaver is a good idea.
Using Home Start and Your Contribution to Help with a Deposit On a First Home.
The best advantage to date for me was when the chance to purchase a house came along and with the help of my KiwiSaver and my Husbands KiwiSaver we did it. This involves a lot of paper work to be gathered and sent in but what a help it was for us in the end.
What About KiwiSaver Today.
Unfortunately the Kick start of 1000$ ended May 2015
The yearly Tax credit is now only up to 521.43 I believe as long as you are working and contributing to the scheme and depending on how much you have contributed over the year. I think you have to be 18 and over. If you are not contributing enough to give the fill above amount you can add more over the year to bring it to the balance needed to benefit from the total tax credit allowed.
You pick the % from you wage you want to contribute 3% or 4% or even 8% you choose the rate when you fill out the form with your employer. Once joined your employer also contributes which has to be a bonus.
There is also the home start you can apply for. You would need to check the latest guidelines to see if you are eligible to apply first.
You choose the provider you want it to be managed by or it will go to a default provider if you don’t state one. You then also get an option to how your KiwiSaver is Managed you Provider will explain to you and show you the options.
Then you just sit back and watch it grow as I have done.
What I don’t Like about this Scheme.
The sudden changes that have been made along the way have taken away some of the benefits of joining. Like the removing the kick start and the reduction in tax credit. I fear what else they may do to it sometimes but over all I am glad I joined.
Note If times get a little strained money wise you can go on a contribution holiday to help you sort it out.
We may not be able to access out KiwiSaver until retirement now but what a help it will be.
Share- Leave a comment and share you experience with KiwiSaver good or bad.?