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KiwiSaver for the self employed or not employed 

KiwiSaver is an initiative to encourage New Zealanders to save for their retirement.  It came into effect on the 1 July, 2007.

It's an important initiative that offers lots of benefits, so it's worth taking the time to find out more about it. If you'd like to know more about KiwiSaver, and TOWER's KiwiSaver Scheme, you've come to the right place!

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Important Information

TOWER KiwiSaver Scheme for the Self Employed or not Employed expand this category
TOWER KiwiSaver Scheme for the self employed or not employed expand this product
What does KiwiSaver mean for the self employed or not employed? view answer close
The TOWER KiwiSaver Scheme was specifically designed and built for the KiwiSaver environment and it can be an effective investment vehicle for the self employed or the not employed (such as stay-at-home parents).
I have joined the TOWER KiwiSaver Scheme and am self employed or not employed, how do I contribute and what is the minimum? view answer close
If you are self employed or not employed there is no minimum contribution. However, you can set up a regular payment via direct debit, or alternatively you may make lump sum payments at any time. Please bear in mind if you are over the age of 18 the Government will contribute 50 cents for every $1 (dollar) you contribute (subject to conditions) of up to $521.43 each year.
What are the benefits of joining the TOWER KiwiSaver Scheme? view answer close

The TOWER KiwiSaver Scheme is an easy way to save through automatic deductions from your bank account. Lump sum payments can also be made at any time.  More importantly the Government has provided incentives which make KiwiSaver a very attractive savings option.

For example: if you are over 18 years old and join now, you have the potential to accumulate an investment of up to $8,800 or more over 5 years, and under current legislation $2600 of that is funded by the Government:

YOUR
CONTRIBUTION

GOVERNMENT
KICKSTART

MEMBER
TAX CREDIT

RUNNING
TOTAL**

Year 1 $1,040 $1,000 $520 $2,560
Year 2 $1,040
$520 $4,120
Year 3 $1,040 $520 $5,680
Year 4 $1,040 $520 $7,240
Year 5 $1,040 $520 $8,800

Total

$5,200

$1,000

$2,600

$8,800

* Based on you paying $1,040 a year (or $86.67 a month) to get the maximum benefit from the Government's member tax credit (subject to meeting qualifying criteria)

** No adjustment has been made for investment returns, fees or taxes. The amounts shown are for illustrative purposes only and are in no way guaranteed.

Do I get all the KiwiSaver benefits? view answer close

If you are over 18 and are either not employed or are self employed you may be eligible for most of the benefits of a KiwiSaver scheme except for employer contributions. You may be eligible for:

  • $1,000 kick-start from the Government when you first join KiwiSaver
  • A member tax credit based on a 50 cents per $1 (dollar) contribution matching subsidy from the Government (up to $521.43) paid into your TOWER KiwiSaver account each year (subject to qualifying criteria)
  • First home buyer's deposit subsidy after three years of contributing, to a maximum of $5,000 after 5 years' contributions (subject to qualifying criteria)
How do I join? view answer close

Once you have read the investment statement, there are two ways to join up to the TOWER KiwiSaver Scheme; you can sign up onlineOpens in a new window or download an application formOpens in a new window complete it and send it back to us at Freepost 521, PO Box 1849, Wellington. Contact us for an investment statement or download one hereOpens in a new window.

You will be required to verify your identity to us; follow the requests in the online sign up process or see the application form at the back of the investment statement for full details.

What are my investment options? view answer close

TOWER KiwiSaver Scheme members get access to five investment funds, covering a range of investment profiles.

The five funds have been selected to provide a range of investment options to suit your needs, and you can choose the one(s) that suits you best.

How much do I have to pay? view answer close

If you are self employed, or not employed, there is no minimum payment required under the TOWER KiwiSaver Scheme rules, but to maximise the member tax credit benefits (for over 18 year olds and on the basis that you qualify for these benefits), you should contribute $1,040 each full year to 30 June (this can be paid annually, or on a regular basis). You can stop contributions to the TOWER KiwiSaver Scheme at any time.

To contribute on a regular basis, complete the direct debit authority form in the back of the TOWER KiwiSaver Scheme investment statement and send it to TOWER with your completed application form.

How do I choose which investment fund option is right for me? view answer close

The TOWER KiwiSaver Scheme gives you the choice of five investment funds with differing profiles. Details are in the investment statement and we do recommend that you work through the 'What is your investment profile?' questionnaire in the investment statement to assist you in getting an idea as to the sort of investment that may be the appropriate investment  for you and consult a professional financial adviser.

You can change your investment choice at any time and you may invest in more than one investment fund.

What now? view answer close
  1. Download and read the TOWER KiwiSaver Scheme investment statement 
  2. Consider your investment profile in the investment statement and consult a professional financial adviser
  3. Have your IRD number handy
  4. Complete the application form onlineOpens in a new window or in the investment statement
  5. If you want to make regular payments, complete a direct debit authority formOpens in a new window
  6. Take a copy of your proof of identity forms
  7. Make any initial contribution payment with a cheque made out to the TOWER KiwiSaver Scheme Main Bank Account.
  8. Compile the above and send to TOWER at Freepost 521, PO Box 1849, Wellington .
What will TOWER do? view answer close
We will send you confirmation of your enrolment, providing you with information on how to access your TOWER KiwiSaver Scheme account balance details online. We will also notify Inland Revenue of your application to the TOWER KiwiSaver Scheme, and if the TOWER KiwiSaver Scheme is the first KiwiSaver scheme you have joined, Inland Revenue will pay the $1,000 Government kick-start into your TOWER KiwiSaver Scheme account (and will also confirm your application).
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