As a small business owner in New Zealand, your income may not always come in the form of regular PAYE payments. However, that doesn't mean you can't take advantage of KiwiSaver to help save for retirement or purchase your first home. You can make voluntary contributions and they are easy to setup – see three easy steps below!
I already had a KiwiSaver account when I started my business, so for me it was as easy as setting up an automatic payment via my internet banking using my KiwiSaver account number in the reference field. I didn’t even need to contact my provider as I found the instructions on how to setup voluntary contributions on a recent statement.
Three steps to setting up voluntary KiwSaver contributions:
Choose a KiwiSaver Provider (if you don’t have one already): see the list of KiwiSaver providers here.
Determine the Contribution Amount: Decide on the amount you can contribute towards KiwiSaver regularly. Remember, even small contributions can make a difference over time. Hot tip: If you pay $20.05 a week ($1,042.86 per annum) you will receive the full free government contribution of $521.43 per annum, which will be automatically deposited into your KiwiSaver account.
Contact Your KiwiSaver Provider: Get in touch with your KiwiSaver provider to inform them of your intention to set up automatic payments for voluntary contributions. They will guide you through the process of setting up regular contributions.
For more information about KiwiSaver, visit the IRD website here and as always I am happy to answer any questions you may have.