KiwiSaver

For a lot of us who have lived in Japan for a few years KiwiSaver may not be something that you are entirely familiar with. Basically KiwiSaver is a long-term savings scheme designed for retirement. It is not compulsory but from what I can see a lot of people in New Zealand are taking advantage of it. Most employees are automatically entered into the scheme when they start a new job but can opt out.

Workers contribute a small percentage of their gross pay. Most KiwiSaver schemes have a minimum contribution. If you find yourself in Japan after starting a KiwiSaver scheme you can access the funds in the scheme after a twelve absence outside of New Zealand. Of course if you do come Japan we can help you re-allocate that money from the KiwiSaver scheme into a tax-efficient offshore plan. As I have said in previous posts New Zealand tax residents have good tax benefits when it comes to offshore investments. Remember you are taxed on the assumption that your offshore portfolio makes 5% per annum. If your portfolio makes more than that then it is effectively tax free. That's a great deal.

Back to KiwiSaver, there are a whole range of investment funds available inside the KiwiSaver scheme. These range in risk from low, meaning cash to high risk. This would generally mean shares. You need to work out your risk tolerance.

Remember KiwiSaver is like a box. The most important thing is what you put in the box. What is your allocation and how much do you contribute on a regular basis.

 If you are a Kiwi and living outside of New Zealand. There are alternatives to KiwiSaver where you can invest in similar things. That's what I'm here for.