A Bill currently under consideration by parliament might bring changes to KiwiSaver in 2019. Some of the more important changes that could come from this include:
From 1 April 2019
- Two new employee contribution rates of 6% and 10%. These will be in addition to the current 3%, 4% and 8%. The minimum employer contribution will stay at 3%. For members currently splitting their contributions between the MAS KiwiSaver Plan and the MAS Retirement Savings Plan (RSP) you can continue to do so. Remember that with RSP you are entitled to withdraw your balance at age 55 whereas in KiwiSaver it is the age of qualifying for New Zealand superannuation – currently age 65.
- Contribution holidays will be renamed ‘savings suspension’ and the maximum term reduced from five years to one. To learn more about savings suspension click here.
From 1 July 2019
- Those aged over 65 may join KiwiSaver. While they will not qualify for Member Tax Credits or compulsory employer contributions, they could benefit from the often lower fees of a KiwiSaver plan.
From 1 April 2020
- Those aged 60 and over will be able to join KiwiSaver without being locked in for five years.