Helpdesk
Commentaries
What's in it for me - $62,400
- 20/4/2012
KiwiSaver is about securing a better future. Whether it is to save a deposit for a house or for your ultimate retirement, you can generally save more in KiwiSaver than in alternative investment products.
Example*: pay = $62,400 a year
|
After 1 year, the position is: |
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| Your savings | $1,872 | i.e. $5,200 a month | ||
| Government's kick-star | + $1,000 | |||
| Government's MTC tax credit | + $ 521 | 50 cents for $1 up to $10 a week i.e. $521 for a full year | ||
| Your employer's subsidy | + $1,320 | Employers pay 3% less tax | ||
| Investment earnings | + $ 116 | (Say 5% after-tax) | ||
| Fees | - $ 33 | |||
| $4,786 | ||||
|
After 5 years, the position is: |
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| $9,360 | + | $13,615 | = | $21,975 |
| Your savings | Government, employer payments and interest | Projected balance | ||
*Assumes that you earn $62,400 a year. If you earn less than $62,400, your contributions will be lower. If you earn more, your contributions will be higher. If you are not an employee, you can choose how much you save - the 3% does not apply and there is no employer subsidy. Until 1 April 2013, the 3% is 2%.
