Taking a quote from a prominent NZ financial adviser in last weekend papers, we would have to agree that everybody aged 64 should be in KiwiSaver before they turn 65.
So long as you join before age 65 and contribute $20 per week for five years, you will be elegible for the initial $1,000 Government kick start, the tax credit of $1,043 p.a. plus the $40 p.a. fee subsidy. After five years you will have a nest egg of $11,630 plus interest and this won’t have any effect on your National Super payment.
Where else can you get a return of 36% without any risk? We could almost go as far as recommending to borrow to top up the payments if you couldn’t quite afford the $20 per week just to get the full return.
Even those aged 55 plus should join as the return after calculating in employer contributions will overshadow ordinary investment returns every year.
Talk to us soon to get the finer details.