KiwiSaver is a work-based savings scheme designed to help you save for your retirement.
In New Zealand, many of us like to live for the present, but planning for your retirement is important too. The incentives provided by KiwiSaver may well be the motivation you need to plan ahead and save for your retirement.
KiwiSaver benefits
The nuts and bolts of KiwiSaver
Investing made easy - the Lifetimes option
SIL KiwiSaver Scheme - experience, flexibility and choice
A kick-start for kids
Not earning a wage or salary?
Transferring your KiwiSaver to SIL KiwiSaver Scheme
SIL KiwiSaver Scheme Risk Profile Questionnaire
KiwiSaver benefits
Investing in a KiwiSaver scheme could be an important part of your retirement savings. Benefits include:
- A one-off government kick-start contribution of $1,000 when you join your first KiwiSaver scheme.
- A government contribution of 50 cents for every dollar you contribute* (capped at $521.43 per year). This is known as a Member Tax Credit and is paid annually to your KiwiSaver account.
- If you are employed, matching contributions from your employer at a compulsory minimum rate of 2% (3% proposed from 1 April 2013) of your gross salary or wages.**
- After three years of contributing to KiwiSaver, you can apply to withdraw your contributions to buy a first home (excluding the kick-start contribution of $1,000 and any member tax credits received). You may also be eligible for a first-home deposit subsidy from Housing New Zealand of up to $1,000 for every year of saving, up to $5,000 towards your first home. Conditions apply.
* Certain criteria apply and not all members will qualify (e.g. those members not resident in New Zealand (limited exceptions apply) and those who are under 18 or who have reached the KiwiSaver End Payment Date). To receive the maximum Member Tax Credit of $521.43, members need to contribute $1,042.86 per year.
** Certain criteria apply and not all members will qualify (e.g some employees whose employer contributes to a superannuation scheme for their benefit or those who are under 18 or who have reached their KiwiSaver End Payment Date).
The nuts and bolts of KiwiSaver
Here’s how it works:
- As an employee, you will make KiwiSaver contributions of an amount equal to either 2% (3% proposed from 1 April 2013), 4% or 8% of your gross salary or wages. You may contribute more if you choose by way of lump sum or regular direct debit contributions.
- Contributions are generally ‘locked in’ until you reach the age of entitlement for New Zealand Superannuation (currently 65) or until you have been a member of a KiwiSaver scheme for at least five years, whichever is the later.
- Early withdrawals are allowed in special circumstances, for example, purchasing a first home, significant financial hardship, serious illness and permanent emigration.
- Once you have been investing in a KiwiSaver scheme for 12 months, you can take a ‘contributions holiday’, that is, stop making payments to your KiwiSaver scheme for a period of time.
- KiwiSaver is a simple yet effective way to save for your retirement.
Investing made easy - the Lifetimes option
The SIL KiwiSaver Scheme offers the Lifetimes option, which adjusts an investor's allocations to the five main asset classes based on his or her specific length of time to the standard New Zealand Superannuation qualification age (currently 65). By selecting the Lifetimes option, you will automatically transition through the various funds when you reach pre-determined age milestones.
| 0-35 |
SIL Growth Fund |
| 36-45 |
SIL Balanced Growth Fund |
| 46-55 |
SIL Balanced Fund |
| 56-60 |
SIL Conservative Balanced Fund |
| 61-64 |
SIL Conservative Fund |
| 65+ |
SIL Cash Fund |
Please note: From time to time, the age ranges applying to the various funds included in the Lifetimes option may change, and the funds relating to certain age bands may be added or deleted. The Lifetimes option has been designed on a general basis; and does not assess information about your personal financial situation. Therefore if you require personalised financial advice, or if you require help at any time, please call us on 0800 737 575 and we will provide you with the contact details of an Authorised Financial Adviser (AFA) in your area. All investments in the funds involve risk which may result in the loss of money invested.
SIL KiwiSaver Scheme -
experience, flexibility and choice
A prospectus for the SIL KiwiSaver Scheme has been registered with the Registrar of Financial Service Providers. A copy of the full registered prospectus (PDF 8MB) can be obtained
here.
Experience matters. SIL Mutual Fund (“SIL”) is a long-standing personal superannuation fund, established in 1959. The SIL KiwiSaver Scheme, which is supervised by the same Trustee as SIL, is the latest enhancement to SIL. In addition, the Scheme Provider, Administration and Investment Manager of the SIL KiwiSaver Scheme, OnePath, is one of New Zealand’s largest fund managers (by funds under management) in the retail sector.*
SIL KiwiSaver Scheme offers one of the largest KiwiSaver investment choices available with a range of funds for you to choose from, including a sustainable growth option. This choice gives you the ability to make a socially conscious decision about where your money is invested. Or if you prefer, you can simplify your investment decision process by selecting our Lifetimes option. The process that is best for you will depend on your particular situation, stage of life and financial goals.
SIL KiwiSaver Scheme Multi-sector Funds
Our five multi-sector funds (funds investing in a mix of asset types) range from a Conservative option to a Growth option. You can select where your money is invested, which will often be determined by how much risk you are prepared to take.
SIL KiwiSaver Scheme Single-sector Funds
You also have the option of choosing from our eight single-sector funds (including a sustainable growth fund). As the name suggests, each fund invests in just one sector, e.g. cash, fixed interest, property or shares, here or overseas.
The SIL Sustainable Growth Fund aims to reconcile traditional finance objectives with social, ethical and environmental parameters. Click here to download the SIL Sustainable Growth Fund Responsible Investment Policy.
For further details on the SIL KiwiSaver Scheme, download the Investment Statement or alternatively, order a copy of the SIL KiwiSaver Scheme information pack by calling us on 0800 737 575.
* FundSource Retail Managed Funds Trends and Market Compositions Report, June 2011.
If you’re not sure which investment fund is right for you, talk to your Authorised Financial Adviser (AFA).
Information on the risk profiles of the SIL KiwiSaver Scheme single-sector funds is contained in the SIL KiwiSaver Scheme Investment Statement.
SIL KiwiSaver Scheme – Fees
OnePath (NZ) Limited is the Promoter, Administration and Investment Manager and Scheme Provider of the SIL KiwiSaver Scheme and charges fees for the day-to-day running of your KiwiSaver account. Below is a summary of each of the current fees that you will incur:
Please note, these fees are subject to change from time to time.
Fee Summary
| Administration fee |
$2.00 per month |
| Trustee fee |
Approximately 0.02% - 0.075% per annum |
| Switching fee |
First two switches free per annum, $25 for each subsequent switch |
| Entry fee |
Nil |
| Exit fee |
Nil |
| Management fee(s) by fund |
0.50% - 1.20% per annum |
| |
|
| SIL Cash Fund |
0.50% p.a. |
| SIL New Zealand Fixed Interest Fund |
0.75% p.a. |
| SIL International Fixed Interest Fund |
0.75% p.a |
| SIL Australasian Property Fund |
1.00% p.a. |
| SIL International Property Fund |
1.00% p.a. |
| SIL Australasian Share Fund |
1.00% p.a. |
| SIL International Share Fund |
1.00% p.a. |
| SIL Sustainable Growth Fund |
1.20% p.a. |
| SIL Conservative Fund |
0.85% p.a. |
| SIL Conservative Balanced Fund |
0.85% p.a. |
| SIL Balanced Fund |
0.90% p.a. |
| SIL Balanced Growth Fund |
0.95% p.a. |
The Administration Fee: Each member of the SIL KiwiSaver Scheme is charged an administration fee of $2.00 per calendar month for the day-to-day administration of their accounts. The fee is a fixed dollar value and paid in arrears. The fee is deducted from the fund in which the member has the highest balance.
The Trustee Fee: The annual fee for the Trustee is a dollar amount to cover the remuneration, travel and miscellaneous expenses of the Trustee. As a percentage of gross funds under management, the fee is approximately 0.02% per annum, but can be up to 0.075% per annum.
Switching Fees: Switches are transfers between funds within the SIL KiwiSaver Scheme. At the discretion of the Manager you can either switch the fund(s) your contributions are invested in and/or switch some or all of your existing investment between funds. You can make up to two switches a year for free. After that the Manager may apply a switching fee (currently $25) to each subsequent switch transaction. The switching fee will be deducted from the fund your investment is switched from.
The Management Fee: The Manager charges a management fee for investment management and other functions. This fee is calculated on the gross asset value of each fund on each valuation day and paid in arrears. The current management fee for each fund is set out in the table above.
Note: currently GST is not charged on any of the fees outlined above.
Other Expenses: The Manager and Trustee may recover expenses such as audit, registry, custodian, legal fees and certain postage fees from the SIL KiwiSaver Scheme, as well as losses incurred due to refunding amounts that are incorrectly paid by employers.
For further information about SIL KiwiSaver Scheme, please refer to the
SIL KiwiSaver Scheme Investment Statement or call toll free on 0800 737 575 for a copy of the prospectus.
A kick-start for kids
Placing a little bit in KiwiSaver is a great way to initiate savings habits for those under the age of 18 years. In addition, the Government will kick-start your child’s first KiwiSaver account with a tax-free contribution of $1,000. If the child is or becomes an employee, contributions will then start to be deducted from their salary or wages. On turning 18 years of age, other KiwiSaver benefits may become available, such as member tax credits and first-home deposit subsidies.
Not earning a wage or salary?
You may be self-employed or not currently earning an income - for example, you may be a stay-at-home parent. KiwiSaver is an excellent option for saving for your retirement, with benefits from the government such as the $1,000 kick-start contribution and a contribution of 50 cents for every dollar you contribute (capped at $521.43 per year) if you are a New Zealand tax resident over 18 but haven't reached the KiwiSaver End Payment Date. This is known as a
Member Tax Credit and is paid annually to your KiwiSaver account. Note, certain criteria apply and not all members will qualify.
Because you don’t have an employer, you will not be automatically enrolled in a KiwiSaver scheme. However, if you would like to invest in KiwiSaver, you can still join a solution such as SIL KiwiSaver Scheme by contacting OnePath Client Services on 0800 737 575 or downloading and completing the application form in the latest Investment Statement.
Transferring to SIL KiwiSaver Scheme
You can easily transfer from your existing KiwiSaver scheme provider to the SIL KiwiSaver Scheme. Your entire account needs to be transferred, as you can only belong to one KiwiSaver scheme at a time. Simply fill out the Application Form in the
SIL KiwiSaver Scheme Investment Statement and send it back to us at OnePath. We will then arrange for the transfer of your funds to be made to your new SIL KiwiSaver Scheme account. Refer to the SIL KiwiSaver Scheme Investment Statement for the tax implications of withdrawing from your existing KiwiSaver scheme.
Our SIL KiwiSaver Scheme pack contains more detailed information about all the investment options available to you. To order an SIL KiwiSaver Scheme information pack, please contact OnePath Client Services.
For further information about SIL KiwiSaver Scheme, please refer to the SIL KiwiSaver Scheme Investment Statement or call toll free on 0800 737 575 for a copy of the prospectus.
Note: Certain aspects of the SIL KiwiSaver Scheme and all other KiwiSaver schemes are prescribed in the KiwiSaver Act 2006 (the “Act”). This page reflects the Act and other laws relating to KiwiSaver as at March 2012. The Act and other laws relating to KiwiSaver may be amended from time to time by the Government and any such amendment may impact on the SIL KiwiSaver Scheme.
Applications for investment into products referred to on this website will only be accepted from people physically residing in New Zealand. Returns and the value of investments in the products referred to on this website are not guaranteed.
This website is for information purposes only. Its content is intended to be of a general nature, does not take into account your financial situation or goals, and is not a personalised financial adviser service under the Financial Advisers Act 2008. It is recommended you seek advice from an Authorised Financial Adviser which takes into account your individual circumstances before you acquire a financial product. If you wish to consult an Authorised Financial Adviser, please contact us on 0800 737 575 and we will provide you with the contact details for an Authorised Financial Adviser in your area.
Past performance is not indicative of future performance. Returns can be negative as well as positive. Investments in any of the products referred to on this website are subject to investment risk, including possible delays in repayment and loss of income and principal invested.
Superannuation Investments Limited (“SIL”) is the Trustee and currently the Issuer, and OnePath (NZ) Limited (“OnePath”) is the Scheme Provider, Promoter and Administration and Investment Manager of the SIL KiwiSaver Scheme (the "Scheme"). Units or interests in the Scheme do not represent deposits or liabilities of ANZ National Bank Limited (“ANZ New Zealand”). Units and interests in the Scheme are subject to investment risk, including possible delays in repayment and loss of income and principal invested. No entity* guarantees (either partially or fully) the capital value or performance of any products issued or managed by OnePath, including the SIL KiwiSaver Scheme.
* This includes OnePath, ANZ New Zealand, Australia and New Zealand Banking Group Limited, SIL, their respective directors, any member of their respective groups of companies and any other person.