If you’re one of the over 400,000 New Zealanders who’ve already joined KiwiSaver, you can skip reading this article. You’re already $1,000 closer to your retirement goals, and you’re most likely getting contributions from the Government every year. What’s more, employer contributions are about to start, so if you haven’t joined, what are you waiting for?

Starting 1 April 2008 if you’re employed and contributing to KiwiSaver, from when you are 18 until when you can take out your end KiwiSaver retirement savings, your employer will generally contribute to KiwiSaver as well. Compulsory employer contributions start at 1%, and increase by 1% every year until April 2011 when they will match your 4% contributions dollar for dollar. There are a few exceptions, but these may only apply when your employer is already contributing to another superannuation scheme on your behalf. For more details on these exceptions, please contact us.

As well there are the already attractive incentives, making KiwiSaver really start to stack up:

• $1,000 from the Government when you first join KiwiSaver.
• The Government will match your contributions up to $1,040 a year from when you’re aged 18 until you can take out your end KiwiSaver retirement savings, if you mainly live in NZ. 
• And $40 a year from the Government towards your scheme fees.

Add this to your own contributions (usually either 4% or 8% of your pre-tax salary or wages) and you could be looking forward to a significant nest egg for your retirement. For example if you are earning $50,000 a year and contribute 4% for 40 years, your contributions, your employers contributions and the Government incentives could all stack up to $201,200 – and your savings could be earning investment returns on top of that.

To find out more visit www.asb.co.nz/kiwisaver or call 0800 ASB RETIRE (0800 272 738).

Eligibility criteria apply.  A disclosure statement is available on request and free of charge.