As we approach the third anniversary of KiwiSaver, many New Zealanders will be thinking about the tax free government housing subsidy available from 1 July 2010 – just one of the many benefits of KiwiSaver. In addition, members will be able to apply to withdraw their contributions to buy a first home or purchase land to build a first home. So, how does it work?

First home deposit subsidy

After 3 years of contributing at least 2% of their income to KiwiSaver, members will be able to apply for a one-off grant* of $1,000 for each year they’ve contributed to KiwiSaver. The subsidy increases by $1,000 per year up to $5,000. So, if they successfully apply for the subsidy after 5 years of contributing to KiwiSaver, they will receive $5,000. Eligible couples can also combine their subsidies up to $10,000.

First home withdrawal

After 3 years of being invested in KiwiSaver, members will be able to withdraw their own contributions and their employer’s contributions for a home deposit (excluding the $1,000 kick start and Member Tax Credits).  It must be their first home not an investment property. There is no minimum contribution amount to be eligible for the first home withdrawal. And for those second home buyers, they may still be eligible to withdraw their contributions if they’re in the same financial position as a first home buyer.

If members are eligible for this fantastic offer, they’ll stay a member of KiwiSaver and continue to grow their savings while taking advantage of the scheme’s other great benefits.

For more information visit www.hnzc.co.nz or www.kiwisaver.govt.nz

* Income, house caps and other eligibility criteria apply.

Contact Thorners if you need any advice on KiwiSaver.

Tags: Hawkes Bay Life Insurance, Home Ownership, KiwiSaver changes, KiwiSaver membership, senior net news, Wellington mortgages

Click on the link below to download our latest newsletter which features KiwiSaver.

Kiwisaver turns three very soon and has a huge following.

Click here to see why in the april newsletter

Click here to view our disclosure statement

Click here to email Thorners or Call Us on (04) 528 8088

Tags: funding retirement, hawkes bay insurance broker, Home Ownership, insurance wellington, KiwiSaver membership, KiwiSaver statistics, senior net news

Client – 47 year old divorcee

Sarah joined KiwiSaver as she wanted to get back on the property ladder. Sarah had previously owned her own home but when her marriage broke up she had to start back at scratch saving once more.

 What do you like about KiwiSaver Sarah?  I didn’t realise that I could also be eligible for the Housing Corp subsidy, even though I had owned a property previously. Denis spoke to me about the ‘second chance’ home buyer which was just like the situation I am in. I’m saving again to buy my ‘first home’ with KiwiSaver – I can get the Housing Corp subsidy plus take out my contributions and my employers contributions after only three years – it’s given me a whole new independence!

discuss your Kiwisaver options with Thorners.

Click here to email Thorners or Call Us on (04) 528 8088

Click here to view our disclosure statement.

Tags: Hastings insurance broker, Home Ownership, KiwiSaver changes, KiwiSaver membership, senior net news

Young Couple Scenario

Mike and Sally have both joined KiwiSaver. Mike was automatically enrolled when he started his new job but he then spoke to Denis who helped him decide which KiwiSaver provider and product was best suited for him. Sally’s a stay at home Mum and wanted to make the most out of what the Government was giving away so she joined up too.

What do you like about KiwiSaver Sally? I can log on to my providers website and see my balance online. It’s simple to understand and at least I can track where my money is going.

What do you like about KiwiSaver Mike? Denis spoke to me about how KiwiSaver can help me buy our first home. We’ve been saving up for a home for a few years but never seem to get far. With KiwiSaver, Housing Corp could give us up to $10,000 as a couple to use as a deposit. I can also use my own KiwiSaver money for that deposit too – it makes savings easier. My KiwiSaver money comes out before I get my pay check so I don’t even notice it – it’s only $2 for every $100 I earn anyway.

Discuss your KiwiSaver options with Thorners

Click here to view our disclosure statement.

Click here to email Thorners or Call Us on (04) 528 8088

Tags: Home Ownership, KiwiSaver changes, KiwiSaver membership, understanding KiwiSaver

The use of monitored security alarms is a great tool and at Thorners we can also offer you a discount on your home and contents insurance policy for having this at your home. One of our alarm contacts is also offering to upgrade all of their monitored alarm clients alarms to include a monitored smoke detector. Contact us soon if you are interested in adding smoke detection to your monitored alarm system or just want a quote to see the difference in premiums that it can make.  This discount is over and above the discounts we offer Gold Super Card holders.

Click here to email Thorners or Call Us on (04) 528 8088

www.thorner.co.nz

Tags: AA Insurance, ADT security new zealand, alarm monitoring new zealand, ami insurance, Ansvar insurance, Home Ownership, senior net news, smoke detection, State Insurance

KiwiSaver continues to gain momentum.

At the end of January 2010 there were 1,305,127 members with potentially 491,330 being in default funds. There are benefits from choosing your own provider and fund so let’s talk about your options if you have gone to a default provider.

If you are still sitting on the fence over whether to join or not, contact us soon to see if KiwiSaver fits your personal situation.

The ability to transfer Australian Super into KiwiSaver is still not in place and this is expected mid year – watch our website for developments.

Members continue to be amazed with the speed with which their funds are accumulating.  If your provider doesn’t offer online access, give us a call and we can discuss options to make this facility available 24/7.

We welcome your call or email to ask about KiwiSaver and look forward to hearing from you soon.

Click here to view our disclosure statement.

Click here to email Thorners or Call Us on (04) 528 8088

Tags: Hawkes Bay Life Insurance, Home Ownership, KiwiSaver membership, Retirement savings, senior net news, understanding KiwiSaver

Check the Sovereign website www.sovereign.co.nz to enter their client competition to win a dream holiday.

Good luck and remember you only have until 28 November 2009 to enter!

If you are not currently a client, contact us for some Sovereign Life Insurance quotes and to arrange an application.   Sovereign also offer very competative home loan options that have no transactional fees.  If you are contemplating a new purchase or have a fixed rate rollover coming up, speak to us about your options.

We are award winning insurance brokers who service clients NZ wide so if you desire service excellence. contact us for a full insurance review soon.

Update 10 December 2009 - It’s been drawn and a Thorners client has won the prize,  Sovereign to contact the client today to sort the arrangements and hand over of the travel voucher.

Thank you for  your interest and contact us if you have any insurance requirements.

Tags: apply online life insurance, hawkes bay insurance broker, Home Loans, Home Ownership, Mortgage Interest Rates, Sovereign dream holdiay prize, sovereign life insurance

KiwiSaver has recently had a second birthday that celebrated over 1,100,500 members.  Of these people 52% were female and only 18% of the total membership were aged 55 plus.

Employee deductions in June 2009 amounted to $62,477,285 and for the financial year ending 30 June were $916,603,051.  Total payments by the IRD to providers including kick starts and member tax credits amounted to $2,116,241,037.

Have all of your family had their slice of the cake from KiwiSaver?  Whether working or not, so long as you or your family members are under 65 years of age, we can show you how to benefit from KiwSaver. The compounding effect of the additional benefits is hard to beat in the current financial climate.

Contact us if you require more information or would like to join.

Click here to view our disclosure statement

Click here to email Thorners or Call Us on (04) 528 8088

Tags: anz Kiwi, Dannevirke Financial, Free money, Grosvenor KiwiSaver, hastings financial, hawkes bay insurance broker, Home Ownership, ING KiwiSaver, join kiwisaver, KiwiSaver, kiwisaver advice, KiwiSaver Default, KiwiSaver statistics June 2009, napier financial, Pay rise, Retirement savings, understanding KiwiSaver

Mortgage interest rates dive

If you are feeling the financial squeeze, ask us to review your current mortgage arrangements to see how they can be restructured to take advantage of the new lower interest rates.  You may be surprised how simple the process is and the savings to be made.

We can offer a fixed interest rate of 5.95% p.a.** for terms 6 months through to 2 years, no refixing fees on fixed rate rollovers and no ongoing bank transactional fees.

 We specialise in…

·       New purchases;

·       Top ups to clear existing debt;

·       Refinancing your existing mortgage;

·       Home Equity Release (Sentinel Lifetime Loan);

·       All of your insurance requirements

New Zealand wide service – let us know your situation today to allow us the opportunity to provide some options

Call us today….

                           Thorners

22-26 Main Street, Upper Hutt

 04 528 8088     

www.thorner.co.nz 

 ** Mortgage Interest rates quoted are current at 19 February 2009 and subject to change – please call us to confirm

All lending is subject to meeting lenders application requirements  and their acceptance of your application

Tags: Borrowing, Ease the financial squeeze, Home Lending, Home Ownership, LAQC, Lending, Low Mortgage Interest Rates, Mortgage Interest Rates, Mortgage Wellington, New Mortgage, No refixing fees, No transactional bank charges, Purchase House, refinance, Sentinel LifeTime Loan, wellington real estate

The National Government has made a number of changes to KiwiSaver following the confirmation of election policies with some amendments.  Most changes will come into effect from 1 April 2009.

The Government’s changes to KiwiSaver legislation will reduce the minimum contribution for employees to 2% of gross salary or wages, matched by a reduced maximum compulsory 2% contribution from employers.

Is 2%+2% enough?

WHAT DOES HISTORY SHOW

The Retirement Commission states that New Zealanders should use 70% of their current income as a guide to the annual income required to keep them comfortable during retirement.  With total savings reducing from 8% of an employee’s gross salary or wages to only of 4% (2%+2%) per annum, it is unlikely to deliver this result.  Therefore, there is a need for New Zealanders to either voluntarily increase KiwiSaver contributions above the new minimum or look to other investment vehicles to make up the difference.

 

This table shows the value of KiwiSaver based on an individual with 35 years until retirement wanting 70% of a $60,000 income, which will provide $45,000 per year in retirement.  How much should he/she save to reach this target?

 What hasn’t changed?

RECEIVING $1,000 FROM THE GOVERNMENT

All KiwiSaver members will still receive $1,000 from the Government into their account when they join, to kick start their savings.

TAX CREDITS TO MATCH YOUR SAVINGS

Members aged over 18 who live in New Zealand will receive “member tax credits” from the Government to match their own contributions.  The tax credits match savings up to $20/week ($1,040/year) and continue until you are able to withdraw from KiwiSaver.

HOME OWNERSHIP ASSISTANCE

As well as being able to withdraw their contributions after 3 years, members may be eligible for a home deposit subsidy of up to $5,000.

MORTGAGE DIVERSION LOWERS IMPACT OF SAVING FOR HOMEOWNERS

KiwiSaver members who already have a mortgage can divert half of their contributions to pay off the mortgage, after one year of saving.  This lowers the barrier to joining for people in this situation.

 

What has changed?

FROM 1 APRIL 2009

 

THE MINIMUM MEMBER CONTRIBUTION RATE

The minimum member contribution rate will be reduced from 4% to 2%. The minimum contribution rate of 2% will become the default contribution rate for new employee members from 1 April 2009.

 

THE MEMBER FEE SUBSIDY

The member fee subsidy will be discontinued from 1 April 2009.

 

CAPPED COMPULSORY EMPLOYER CONTRIBUTIONS

Compulsory employer contributions will be capped at 2% and the employer tax credit will be discontinued from 1 April 2009.

 

THE EMPLOYER SUPERANNUATION CONTRIBUTION TAX EXEMPTION

The employer superannuation contribution tax exemption will be capped at the compulsory employer contribution of 2% from 1 April 2009. (That is equivalent to 2% of the employee’s gross salary or wages.)

WITH IMMEDIATE EFFECT

CHANGES TO THE EMPLOYMENT RELATIONS ACT

The KiwiSaver Act will be amended to make it clear that upon joining KiwiSaver, no employee can have their gross pay reduced as a result of employer contributions. This will ensure that when employees join KiwiSaver, the compulsory contributions from their employer are a genuine addition to their existing pay. The changes will also provide employers and employees with the ability to negotiate their own arrangements in good faith. The Employer Relations Act amendment relating to KiwiSaver will then be obsolete, and will be repealed from the date of assent of the Employment Relations Amendment Bill.

 

Click here to view our disclosure statement

Click here to email Thorners or Call Us on (04) 528 8088

 

 

 

 

 

Tags: Childrens savings, Contractors, Employee superannuation, Employer subsidy, Home Ownership, Housewife, kick start cash payment, Kiwisaver 2% versus 4%, KiwiSaver changes, KiwiSaver changes 1 April 2009, Kiwisaver employer agreements, PAYE, Retired, Retirement savings, understanding KiwiSaver, Youth workers