The last three days! Did you get this government subsidy? Hundreds of thousands of New Zealanders missed it!

19 Jul 2021

Today is June 28th, YG Insurance reminds you that there are only three days left before you can receive $ free $521 subsidy from the government!

Check your KiwiSaver account quickly!

If you’ve been on the books since July 1 last year for more than $1042.86, rest assured that you won’t miss out on this benefit! One day in July, there will be at least this amount on your account:

$1042.86+$521.43=$1564.29

If you do not save enough, please move your fingers, self-transfer to make up the difference, this benefit will also have!

In case you don’t save enough $1042.86, and you don’t want to make up the difference, it doesn’t matter, the government will still subsidize you by half the amount! For example, if you put $600 in it from July 1 last year, the government will give you $300. So, as long as you save money, there are subsidies!

This is a New Zealand government incentive for KiwiSaver accounts. For every $1 deposited into any KiwiSaver account, the government subsidizes $0.5, up to $ maximum of $521.43 per year. But many people, especially many Chinese friends, are unaware of the benefit, and hundreds of thousands of New Zealanders miss out on hundreds of millions of New Zealand dollars in government subsidies each year.

To get this $521.43, you only need to deposit at least $1042.86 on your KiwiSaver account within one year (July 1 to June 30, 20th of that year) or at least $21 a week.

Today, YG Finance is here to introduce KiwiSaver, a New Zealand-style pension savings fund.

What is KiwiSaver?

KiwiSaver is a voluntary pension savings fund set up by the New Zealand Government since 2007.

New Zealand citizens or persons with resident visas and permanent resident visas can join, whether working or not, and over 65 years of age.

Since the foundation is invested by a government-appointed KiwiSaver operator and individuals are subject to certain financial risks, KiwiSaver can also be understood as a lifelong investment wealth management product.

KiwiSaver source of funding

There are three sources of money on KiwiSaver’s account: personal deposits, government subsidies and employer contributions.

Personal deposits

If you’re an employee: You can choose to deposit 3%, 4%, 6%, 8% or 10% of your pre-tax income into your KiwiSaver account. If not selected, the system will automatically set to 3%.

If you are self-employed or unemployed: You can deposit your funds into your KiwiSaver account.

For personal deposit amounts, consult a professional KiwiSaver advisor to choose the appropriate amount according to your financial situation.

Government subsidies

Government subsidies are benefits that begin with a tweet that mentions up to $521.43 a year.

Employer contributions

If you are an employee and have your own KiwiSaver account, your employer should legally contribute to that account, typically 3% of the employee’s pre-tax income.

What are the benefits of joining KiwiSaver?

  • With or without a job, your KiwiSaver account receives a government subsidy of up to $521.43
  • The employer is obligated to pay for your KiwiSaver account in amounts not less than 3% of your pre-tax salary
  • As long as you have funded your KiwiSaver account for more than three years, you can withdraw money from your account to purchase your first home and keep your account balance at $1,000
Photo: kaingaora.govt.nz
  • First home buyers can receive an additional home purchase subsidy of up to $10,000 if they inject more than three years into their KiwiSaver account. For more information, please visit the relevant government website https://kaingaora.govt.nz/
  • At least 65 years of age, withdrawals can be made from the KiwiSaver account for retirement
  • You can also withdraw money from a KiwiSaver account in the event of a severe economic crisis, major illness, or emigration

Don’t think a year $521.43 is not very useful, 3% of pre-tax wages are not much, in fact, investment and financial management, do not take less money and not for, less into more, the final amount can be quite a lot! YG Finance here to calculate your account:

Little A, who joined KiwiSaver at age 20, earns $35,000 a year and at age 65, the account is $383,100.

Little B, who joined KiwiSaver at age 30, earns $45,000 a year and ,287,100 at age 65.

Little C, who joined KiwiSaver at age 40, earns $55,000 a year and has an account of $195,800 by the age of 65.

As can be seen from the table in the figure above: In general, the sooner you join, the more you earn.

How does KiwiSaver work?

The funds on KiwiSaver’s account are not managed by the government, but are invested by government-appointed operators. At present (28 June) there are 30 government-designated operators, including banks, investment companies, etc., from which individuals are free to choose.

These carriers offer 5 types of investments with low to high risk for individual KiwiSaver accounts:

  • Defensive Defensive
  • Conservative Conservative
  • Balanced Balanced
  • Growth GrewGrowth
  • Aggressive Aggressive

To explain the returns of these five investment types more intuitively, YG Finance gives you an example:

Assuming Little A is 30 years old and earns $55,000 a year, the figure below shows the amount of her account after choosing a different investment type for five years.

About how to invest in KiwiSaver account can be a university ask,YG Financial will have a series of tweets detailing, stay tuned!

Today’s top priority is to give you $521!

It shouldn’t be too late to check yourself out

KiwiSaver account!

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