Kiwisaver – saving for your retirement
Government superannuation is a growing concern for many developed economies, as the proportion of people in the workforce relative to those in retirement is forecast to change substantially over the next 30 years.
In New Zealand one response to this has been the government establishment of the Kiwisaver scheme.
Kiwisaver deducts an agreed percentage from participating employees’ salary or wages, and requires the employer to match this – with support in the form of tax relief from the government.
Kiwisaver is currently an optional scheme, however there are on-going discussions in regards to making it compulsory.
Participating members are able to chose who manages their investment, from a group of approved money manager investors. Different investment managers also offer programmes with a variety of risk and return profiles.
It is envisaged that Kiwisaver funds will provide a key component of the money required for retirement income as the ‘Baby Boomer’ generation retires.
Full details about Kiwisaver are available from the Kiwisaver Website
