Did you know there have been a few important changes to KiwiSaver this year? We’ve summarised them for you, so you can learn if they affect you:
More choice in how much you contribute – new contribution rates of 6% and 10% were added in April, so if you’re an employee you now choose to contribute 3%, 4%, 6%, 8% or 10% of your gross salary or wages to your KiwiSaver account. Learn more
Changes to the contribution holiday – the contribution holiday (where you can choose to suspend your contributions to your KiwiSaver account) has been renamed ‘savings suspension’. Also, the maximum period for a savings suspension has been reduced from five years to one year.
The member tax credit has been renamed 'government contribution'. You can find out more about the government contribution here.
Changes for Kiwis over 60 – Kiwis aged 65 or over can now join KiwiSaver. In addition, since July, someone age 60 or over who joins KiwiSaver can withdraw their KiwiSaver money when they turn 65 and no longer needs to wait until they have been a member for at least five years.
From April 2020, members who joined KiwiSaver prior to 1 July and were age 60 or over at the time will be able to opt out of the five-year minimum lock-in period once they’ve reached 65. If a member does opt out, they will no longer be entitled to further government contributions or employer contributions.
If you’d like to know more about any of these changes, and how they may affect you, get in touch with us.