 |
|
|
|
|
|
Frequently asked questions and answers about KiwiSaver, including how to contribute, employer contributions and what happens to your KiwiSaver investment if you stop working.
Join or transfer to Westpac KiwiSaver Scheme.
|
|
|
| > |
if I choose to join KiwiSaver, can I opt out or cancel my membership later on? |
|
| > |
how do I stop contributing if I can’t afford it? |
|
| > |
can I withdraw my savings if I’m suffering significant financial hardship or serious illness? |
|
| > |
how do I find out my Westpac KiwiSaver Scheme investment balance? |
|
| > |
where is my money invested? |
|
| > |
can I join KiwiSaver if I’m self-employed or not currently working? |
|
| > |
why aren’t my employer contributions showing in my KiwiSaver scheme? |
|
| > |
why aren't my contributions equal to my Westpac KiwiSaver Scheme investment balance? |
|
| > |
how do I switch my investment option in the Westpac KiwiSaver Scheme? |
|
| > |
how does the member tax credit work? |
|
| > |
what happens to my KiwiSaver savings if I stop working? |
|
| > |
what happens if I change jobs or am just starting in the workforce? |
|
| > |
how do I change my contribution rate? |
|
| > |
what is a PIR? |
|
 |
| You can only opt out of KiwiSaver if you have been automatically enrolled by your employer when starting new employment. You must do this between week 2 and week 8 of commencing new employment. |
|
| If you choose to join KiwiSaver by contacting a scheme provider directly or advising your employer, you can’t opt out under normal circumstances. However, you may be able to apply for an early contributions holiday if your circumstances change within 12 months of joining KiwiSaver. |
|
| You can apply for a contribution holiday any time after you have been a member for 12 months. |
|
| > Back to top |
|
|
| If contributions are being deducted from your salary or wages, you can apply to the Inland Revenue Department (IRD) to take a contributions holiday. |
|
| A contributions holiday may be granted by the IRD if: |
|
 |
you are suffering or likely to suffer financial hardship. A contributions holiday of 3 months (or longer, if agreed by the IRD) may be granted, or |
|
|
12 months have passed since either your first contribution was received by the IRD or a KiwiSaver scheme. You may take a contributions holiday of between 3 months and 5 years. |
|
|
| When your contributions holiday ends, you can apply to IRD for another one. |
|
| Your employer will suspend any contributions it is making to KiwiSaver on your behalf during your contributions holiday. Once you recommence contributions to your KiwiSaver scheme from your salary or wages, so will your employer. |
|
| If you are contributing to KiwiSaver by lump sum contributions or directly from your bank account, you can elect to reduce or suspend your contributions (subject to the rules of your KiwiSaver scheme). |
|
| > Back to top |
|
|
| Significant financial hardship |
|
| You can apply to make a withdrawal if you’re suffering significant financial hardship. You will be required to provide documentation to support your application. |
|
| If your application is approved by the trustee, the amount withdrawn may be limited to the amount that, in the trustee’s opinion, is required to alleviate your financial hardship (up to a maximum of the value of your KiwiSaver savings less the Government’s kickstart contribution and your total accumulated member tax credits). |
|
| To request an application form, call our Customer Relations Team on 0508 WPAC KIWI (0508 972 254). |
|
| Serious illness |
|
| You may apply to make a withdrawal if you suffer serious illness. Serious illness is defined as an injury, illness or disability, |
|
|
that means you are totally and permanently unable to do work for which you are suited by reason of experience, education, or training, or any combination of these things, or |
|
|
that poses a serious and imminent risk of death. |
|
|
| If your application is approved, you can withdraw your KiwiSaver savings in full (including the Government’s kickstart contribution and the total accumulated member tax credits). |
|
| You will be required to supply documentation to support your serious illness or significant financial hardship withdrawal request. |
|
| > |
download Westpac KiwiSaver Scheme serious illness application(PDF 282kB) |
|
|
| File won't open? You'll need Adobe Reader. |
|
| > Back to top |
|
|
| To find out your Westpac KiwiSaver Scheme balance you can: |
|
|
check your balance online using Westpac Online Banking |
|
|
visit a Westpac branch |
|
|
phone us on 0508 WPAC KIWI (0508 972 254; 8.30am to 5.30pm, Monday to Friday) |
|
|
| As a member, you’ll receive annual statements summarising your investment, including contributions received and tax paid during the year and your balance at the end of the scheme financial year (31 March each year). |
|
| > Back to top |
|
|
| KiwiSaver savings are invested in registered KiwiSaver schemes managed by scheme providers. Organisations providing KiwiSaver schemes must meet specific criteria. |
|
| BT Funds Management (NZ) Limited (BT) is the scheme provider and Westpac New Zealand Limited is the distributor, of the Westpac KiwiSaver Scheme. BT is one of New Zealand’s leading fund managers and the investment management arm of Westpac in New Zealand. |
|
| The Westpac KiwiSaver Scheme has five investment options, which are designed to align with different asset allocations reflecting different levels of investment risk and potential growth. The Westpac KiwiSaver Scheme also offers a Capital Protection Plan (CPP) as one of the investment options, which is designed to ensure that the capital contributed by a KiwiSaver member to a CPP fund is protected on the maturity of that fund. |
|
| We recommend that a member of the Westpac KiwiSaver Scheme consults a Westpac investment adviser regarding advice as to which investment option may be most appropriate for a members financial needs and tolerance for risk. |
|
| > |
Westpac KiwiSaver Scheme investment options |
|
|
| > Back to top |
|
|
| Yes, you can join a KiwiSaver scheme if you are not currently working, or self-employed (including if you are a beneficiary). Children can also join (subject to the Minors’ Contracts Act and consent from legal guardian(s)). |
|
| Anyone can approach a KiwiSaver scheme provider and arrange to join a KiwiSaver scheme directly (subject to citizenship, age and residency requirements). |
|
| If you are self-employed or not currently working (not paying PAYE tax), you can make voluntary contributions directly to a KiwiSaver scheme. |
|
| Some KiwiSaver schemes, such as the Westpac KiwiSaver Scheme, have no minimum contribution requirements for members who are self employed or not currently earning salary or wages such as children or stay at home parents. This means that you have the flexibility to decide how much and how often to contribute. |
|
| > Back to top |
|
|
| If you’re contributing from your salary or wages through your employer, the IRD will hold your initial contributions for at least 3 months. After this, the IRD can take 3 to 6 weeks to process your contributions and send them to your KiwiSaver scheme. |
|
| For the balance of your unprocessed contributions, call the IRD on 0800 549 472. You can also register with Inland Revenue to view your details online at their website |
|
| > Back to top |
|
|
| The Westpac KiwiSaver Scheme is a unitised managed fund. This means your contributions are used to purchase units in your chosen investment option. |
|
| Each investment option pools investors’ money to purchase assets. The value of these underlying assets is calculated daily to give a unit price (a price for each single unit held). |
|
| This unit price is multiplied by the number of units you hold to calculate your Westpac KiwiSaver Scheme balance. |
|
| Movements in the price of the underlying assets of an investment fund (such as shares) affect the unit price and result in your balance moving up and down. |
|
| > Back to top |
|
|
| You can complete a form to change your investment option and switch your investment option at any time. |
|
| You can change your investment option by: |
|
|
directing future contributions to another investment fund or funds, or |
|
|
moving your existing units from one or more investment funds into another fund or funds. |
|
|
| If you wish to switch from a Capital Protection Plan (CPP) fund, you must transfer all of your investment in the CPP fund. |
|
| If you switch to another fund from a CPP fund before that fund matures, your investment will not benefit from the capital protection. |
|
| > |
Westpac KiwiSaver Scheme investment option switch request(PDF 239kB) |
|
|
| File won't open? You'll need Adobe Reader. |
|
| > |
contact us now |
|
|
| > Back to top |
|
|
| If you are contributing to KiwiSaver, live in New Zealand and are aged 18 or over, the Government will contribute 50 cents for every dollar you contribute up to a maximum of $521.43 until you turn 65 or have been a KiwiSaver member for 5 years, whichever is the later (subject to eligibility criteria). This works out to about $10 a week. |
|
| The member tax credit amount is currently calculated according to a statutory formula. |
|
| It is based on the total amount of your KiwiSaver contributions (and any complying superannuation funds you contribute to) each year (commencing 1 July) and the period during that year that you meet the eligibility requirements. |
|
| You won’t be eligible for member tax credits during periods when New Zealand is not your principal place of residence and you will need to advise your KiwiSaver scheme provider of these periods. |
|
| Your KiwiSaver scheme provider will claim member tax credits on your behalf and credit them to your KiwiSaver scheme once received from IRD. |
|
| The rules regarding member tax credits, and their availability, may change from time to time Please refer to the
Westpac KiwiSaver Scheme Investment Statement or call us on 0508 WPAC KIWI (0508 972 254) for more information. You might also like to check: www.kiwisaver.govt.nz for further details. |
|
| > Back to top |
|
|
| Your KiwiSaver membership is portable which means when you change employers you can continue to contribute to KiwiSaver. |
|
| If you stop earning a salary or wages, your employee contributions to KiwiSaver will stop. |
|
| You can make voluntary contributions to your KiwiSaver scheme. In order to receive the maximum annual member tax credit of about $521 from the Government, you will need to contribute approximately $1042 between 1 July and 30 June each year (subject to eligibility). |
|
| When you start work again, automatic deductions from salary/wages will recommence. |
|
| > Back to top |
|
|
| When you change jobs or start working |
|
|
you will be automatically enrolled in a KiwiSaver scheme when you start new employment if you’re aged 18 years or over and eligible to join KiwiSaver |
|
|
contributions will be deducted from your gross salary or wages |
|
|
you will have 8 weeks to opt out of KiwiSaver, but you can’t opt out during the first 2 weeks of commencing new employment |
|
|
if you opt out, any contributions already deducted will be refunded |
|
|
if you don’t opt out and you have more than one employer you will be able choose whether to have contributions deducted from existing employers |
|
|
if you don’t opt out and start any new employment within 12 months of joining KiwiSaver, contributions will be deducted from your gross salary or wages paid by that new employer. |
|
|
| > Back to top |
|
|
| If you are paid salary or wages you must contribute a minimum of 2% of your gross salary or wages (proposed to increase to a minimum of 3% from 1 April 2013). You can change your contribution rate to either 2% (proposed to increase to 3% from 1 April 2013), 4% or 8% by notifying your employer. You can only change your contribution rate once every 3 months unless your employer agrees otherwise. |
|
| If you’re self-employed or not working but still making payments to the Westpac KiwiSaver Scheme, you can change the amount and frequency of your contributions at any time. |
|
| > Back to top |
|
|
| The Westpac KiwiSaver Scheme is a Portfolio Investment Entity (PIE) for tax purposes. |
|
| This means the Westpac KiwiSaver Scheme will generally pay tax on taxable income attributed to you at your Prescribed Investor Rate (PIR). Currently this is either 10.5%, 17.5% or 28%. |
|
| You can go to www.ird.govt.nz, search word: ‘PIR’ to determine your correct PIR or for more information on PIRs. |
|
| Tax paid (or refunded) will be reflected by the cancellation (or issue) of units. |
|
| Your PIR will be one of the following rates assuming you provide us with your correct IRD number): |
|
|
10.5% where you are a New Zealand tax resident and in either of the two previous income years you earned less than or equal to both: |
|
|
|
- $14,000 of taxable income (excluding income from PIEs); and |
|
|
|
- $48,000 in total taxable income and net income from any PIEs (after subtracting losses from PIEs); or |
|
|
|
17.5% where you are a New Zealand tax resident, and do not qualify for the lowest rate, but in either of the two previous income years you earned: |
|
|
|
- $48,000 or less of taxable income (excluding your income from PIEs); and |
|
|
|
- $70,000 or less in total taxable income and net income from any PIEs (after subtracting losses from any PIEs); or |
|
|
|
28% for all members who do not qualify for either of the lower rates. |
|
|
| If you do not provide us with your PIR, the PIR for your taxable income will default to the maximum rate of 28%. |
|
| If you incorrectly notify a scheme provider that you qualify for a rate lower than your correct rate, you may be required to file a tax return and pay additional tax (plus any interest and penalties) directly to the IRD. If your notified PIR is too high, any overpaid tax cannot be refunded. |
|
| > |
Westpac KiwiSaver Scheme change of details (PDF 45kB) |
|
|
| File won't open? You'll need Adobe Reader. |
|
| > Back to top |
|
