Explore KiwiSaver options for a secure financial future in New Zealand. Learn about consulting a financial advisor, low-fee index fund growth providers, and how Americans can contribute.
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“Hi all, American here who became eligible last year to contribute to KiwiSaver, and my employer (Council) automatically enrolled me into some SuperEasy scheme. I’m logging in for the first time to their website , and everything is quite generalised and doesn’t make sense to me. Very opaque. I suspect it’s shit.
Has anyone dealt with SuperEasy? Can’t see any reason to stay with them.
I’m looking for a low-fee index fund growth provider. Any favourites?
Also, any Americans out there contributing to KiwiSaver? I’ve heard it can be an IRS nightmare, but I don’t understand why. I want to save more than 3% but I hear there’s complications with that. That said, my US accountant didn’t see any issues with it, so I’m generally confused on the matter.
Thanks!”
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It’s great that you’re looking into your KiwiSaver options and considering your financial future in New Zealand. I can provide you with some information and suggestions:
Discuss KiwiSaver with a Financial Advisor:
It’s always a good idea to seek advice from a financial advisor, especially when dealing with retirement savings and investments. They can provide personalized guidance based on your specific financial situation and goals. In New Zealand, some advisors offer free financial advice related to KiwiSaver, so be sure to explore those options.
Choosing a Low-Fee Index Fund Growth Provider:
To find a KiwiSaver provider that offers a low-fee index fund option for growth, you should research different providers and their investment options. Some of the popular providers in New Zealand known for their low-cost index funds include Simplicity, Smartshares, and SuperLife. Compare the fees, investment options, and historical performance of these providers to make an informed choice.
Americans Contributing to KiwiSaver:
It’s possible for Americans living in New Zealand to contribute to KiwiSaver. However, there are some considerations to keep in mind:
Ensure that your KiwiSaver provider is aware of your tax residency status in the U.S. and provides the necessary tax documentation to the IRS.
KiwiSaver contributions are made after-tax, so you may be eligible for tax credits in the U.S. to mitigate any double taxation.
KiwiSaver is considered a foreign trust by the IRS, and you may have to file additional tax forms, such as Form 3520 and Form 3520-A, to report your KiwiSaver account.
Contributing More Than 3%:
Yes, you can contribute more than 3% of your income to KiwiSaver. While your employer may default you into a 3% contribution rate, you have the flexibility to choose your contribution rate, which can be 4%, 6%, or even higher based on your preferences. You can adjust your contribution rate through your KiwiSaver provider.
Before making any changes to your KiwiSaver contributions, it’s crucial to consult with a financial advisor who can assess your individual financial situation and ensure that your KiwiSaver plan aligns with your retirement and tax goals.
Hope this helps.
Regards, Clive Fernandes (Financial Adviser)
Director – National Capital
Disclosure: I am the director of National Capital, a KiwiSaver advice firm. The views expressed in this article are the views of the author. The information provided is of a general nature and is not intended to be personalised financial advice. You may seek appropriate financial advice from a Financial Adviser to suit your individual circumstances or contact National Capital.
