Is KiwiSaver for everyone?
Once you start your New Zealand employment, you’ll likely be automatically enrolled in KiwiSaver, a voluntary saving scheme that the government established to allow you to save for retirement. Even if you’re self-employed, there are options for joining. The investment stays with you when you change employment and can be accessed for a first home purchase.
How’s it work? You choose a percentage of your income to contribute, and your employer is required to contribute at least 3% of your gross income as well. On top of that, the government contributes to the account annually.
Free money! Who’s going to argue with that?
American passport and green card holders (who remain liable for US taxes even after leaving the country) should consult a qualified tax advisor before enrolling in KiwiSaver. The US IRS doesn’t treat KiwiSaver the same as US IRAs, which can result in significant compliance and tax burdens.
It’s good to get on top of this early because you can only opt-out of automatic KiwiSaver enrolment in the first 8 weeks of employment, and you can’t get out if you choose to join KiwiSaver.
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