Kiwisaver For Kids - Kids Can Join Too

- Fritz J De Boer, Cfp, Nzij Financial Services Limited


UPDATE: 31 July 2008 - Kiwisaver - KiwiSaver - Moves to make Kiwisaver Fairer

The funds will be locked in until age 65 but some amounts can be accessed earlier in certain circumstances, such as buying a first home. They’ll need an IRD number before joining – you can apply for one using an IR594 form from Inland Revenue.

KiwiSaver members under 18 still receive the $1,000 kick start to savings provided by the Government. They’ll also receive the subsidy towards scheme fees of $40 per year. Once they turn 18 they’ll be eligible for tax credits matching contributions made to their account, up to $20 per week. Starting early, compound interest and regular savings can do more than you think.

When your child turns 18, as a KiwiSaver member, they’ll have to notify their employer to deduct KiwiSaver contributions from their wages, at a minimum rate of 4% (unless your child is on a contribution holiday). Under the current rules it’s possible to apply for a contribution holiday after being a KiwiSaver member for twelve months.

For those not receiving a salary or wages there is no minimum ongoing contribution level to KiwiSaver, and no initial contribution is required. Most KiwiSaver providers do require a minimum contribution but generally you can choose the contribution amounts and how frequently they are made.

What are the benefits of KiwiSaver?

KiwiSaver offers a number of superannuation-related benefits, including:

•    A one-off contribution from the Government of $1,000 to ‘kick-start’ an individual’s KiwiSaver member account

•    A Government contribution of $40 per annum towards fees

•    A first home deposit subsidy of up to $1,000 per year of KiwiSaver membership (up to a maximum of $5,000 for five years) to eligible members after three years of saving through KiwiSaver. Detailed criteria will apply and not all members will qualify.

We firmly believe that all parents owe it to their children to enrol them in KiwiSaver to take advantage of these significant benefits.

We can assist with recommendations for KiwiSaver providers that suit your situation. For example, providers who will accept applications without an initial contribution requirement.

So take action now. Contact us for an information pack or to discuss KiwiSaver for your kids or for yourself, please call Fritz de Boer on 0800 90 60 90, 04 499 3592 or email  fritz@nzij.co.nz

 
Press Release from Beehive