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!
Important Information
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:
YOURCONTRIBUTION
GOVERNMENTKICKSTART
MEMBERTAX CREDIT
RUNNINGTOTAL**
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.
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:
Once you have read the investment statement, there are two ways to join up to the TOWER KiwiSaver Scheme; you can sign up online or download an application form complete it and send it back to us at Freepost 521, PO Box 1849, Wellington. Contact us for an investment statement or download one here.
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.
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.
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.
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.
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