KiwiSaver: you don't need to be rich to be better off tomorrow

Legislation has been passed in May 2011 that makes important changes to KiwiSaver, including changes to Member Tax Credits and employer superannuation contribution tax (ESCT) rates. Other changes to employer and employee contribution rates have also been proposed in the 2011 Budget. For more information click here.

Saving for your retirement often takes a back seat, especially when you're trying to make ends meet for day-to-day living. But with KiwiSaver, saving for your retirement is now a lot easier. You can choose to save as little as 2% of your salary or wages before tax into a KiwiSaver scheme if you're working for an employer, or arrange to make direct payments into a KiwiSaver scheme if you're not.

Voluntary long-term savings scheme

KiwiSaver is a voluntary long-term savings initiative set up by the Government to help Kiwis save for their retirement and get into their first home sooner. It's open to all New Zealand residents under 65.

Benefits of KiwiSaver include:

A one-off kick-start contribution of $1,000: when you first join a KiwiSaver scheme you'll receive $1,000 from the Government.
Member tax credits: if you're 18 and meet several other conditions the Government will pay you a yearly tax credit that matches your contributions by 50 cents to each dollar contributed up to a maximum of $521.43 each year.
Contribution holidays: once you've been contributing to KiwiSaver for at least 12 months, you can apply for contribution holidays. You can stop putting money into KiwiSaver for between three months and five years.
Help buying your first home: after three years in KiwiSaver you may be eligible:
- for a first home deposit subsidy of $1,000 per year of savings up to a maximum of $5,000 (a couple could qualify for up to $10,000). Visit the Housing New Zealand website for more details.
- to withdraw a lump sum amount (excluding the Government starting incentive contribution and member tax credits) to help you buy your first home.

The Co-operative Bank has partnered with AXA*, a leading provider of superannuation and investment services and one of the six default providers chosen by the Government, to bring you a simple and easy-to-manage KiwiSaver scheme. By choosing the AXA KiwiSaver scheme you'll benefit from AXA's investment management expertise.

Contribute either 2%, 4% or 8% into the scheme

When you join up to the AXA KiwiSaver scheme you can choose to contribute either 2%, 4% or 8% of your gross (before tax) wages or salary into the scheme.

The table below shows what your KiwiSaver deductions would be from your weekly pay based on your annual salary/wages.

Annual Salary (before tax)	Weekly Contribution (2%)	Weekly Contribution (4%)	Weekly Contribution (8%)
$20,000	$7.69	$15.38	$30.77
$30,000	$11.54	$23.08	$46.15
$40,000	$15.38	$30.77	$61.54
$50,000	$19.23	$38.46	$76.92
$60,000	$23.08	$46.15	$92.31
$70,000	$26.92	$53.85	$107.69
$80,000	$30.77	$61.54	$123.08

How do I join the AXA KiwiSaver Scheme?

To find out more about how KiwiSaver can help you prepare for a better future, or to join the AXA KiwiSaver Scheme, drop in to your local branch, call 0800 554 554, or download the AXA KiwiSaver Scheme Investment Statement here (PDF 1.03MB).

If you have any questions about the AXA KiwiSaver Scheme please contact AXA directly on 0800 292 728.

Further information about KiwiSaver can be found on the official KiwiSaver website or from Sorted.

* The AXA KiwiSaver Scheme is managed and promoted by AXA Wealth Management Limited trading as "AXA New Zealand".

The Co-operative Bank distributes the AXA KiwiSaver Scheme to its customers and receives fees from AXA in respect of customers who become members of the scheme. These fees are payable by AXA. The Co-operative Bank is not a promoter of the Scheme. Investments in the Scheme are not guaranteed. Further details can be found in the Investment Statement for the scheme. This website contains information of a general nature only. If you would like advice that takes into consideration your particular financial situation or goals, please contact your financial adviser. A disclosure statement is available from your financial adviser, on request and free of charge.

Interest rates and fees are subject to change. An Investment Statement and the current Disclosure Statement are available from any branch of The Co-operative Bank or can be downloaded here. For all lending products, The Co-operative Bank lending and insurance criteria, and fees apply. If a home loan is greater than 80% of the property's value, a low equity interest rate premium, will apply.