KiwiSaver question

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Forums › Finance and wealth management › KiwiSaver question

timtim

131 posts

Master Geek
+1 received by user: 1

#85180 15-Jun-2011 12:33

I joined Kiwisaver around 1 year ago.I wonder is there any way to cancel the kiwisaver ?thanks

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1332 posts

Uber Geek
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Inactive user

#481425 15-Jun-2011 12:38

http://www.kiwisaver.govt.nz/already/change-contrib/stop-contrib/

You need a valid reason to do so. Welcome to the nanny state.

ScottStevensNZ

245 posts

Master Geek

#481427 15-Jun-2011 12:39

Look for 'Contributions holiday' on IRD's site. You could try phoning the call centre, but by the time you get through you will be drawing down your kiwisaver for retirement so its kind of moot :)

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timtim

131 posts

Master Geek
+1 received by user: 1

#481429 15-Jun-2011 12:47

I mean closing Kiwisaver acount completely

jbard

1377 posts

Uber Geek
+1 received by user: 17

#481432 15-Jun-2011 12:52

Not without one of the valid reasons posted above.

scuwp

3927 posts

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#481442 15-Jun-2011 13:26

timtim: I mean closing Kiwisaver acount completely

You can't. Thats the whole point of a retirement savings scheme.

Lazy is such an ugly word, I prefer to call it selective participation

wellygary

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#481450 15-Jun-2011 13:34

timtim: I mean closing Kiwisaver acount completely

Why?, What has changed since you decided to join a year ago?

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timtim

131 posts

Master Geek
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#481470 15-Jun-2011 14:03

wellygary:
timtim: I mean closing Kiwisaver acount completely

Why?, What has changed since you decided to join a year ago?

I'm unemployment and since I joined I received $1000 kick start .Now the balance of it is only $900 and something ....that's the reason why I wanna close it completely .

jbard

1377 posts

Uber Geek
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#481472 15-Jun-2011 14:05

How can your balance have gone down $100?

timtim

131 posts

Master Geek
+1 received by user: 1

#481485 15-Jun-2011 14:17

jbard: How can your balance have gone down $100?

I think that because the scheme provider charged

alasta

6889 posts

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#481487 15-Jun-2011 14:20

jbard: How can your balance have gone down $100?

It could easily happen over the short term if you have a growth portfolio and the share market drops.

scuwp

3927 posts

Uber Geek
+1 received by user: 2510

#481491 15-Jun-2011 14:25

timtim:
jbard: How can your balance have gone down $100?

I think that because the scheme provider charged

Yes you pay fees to have your money invested (basic stuff)...if you are not contributing regularly and the fees are more than the fund is returning to your account then yes you will go backwards.

Lazy is such an ugly word, I prefer to call it selective participation

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bazzer

3438 posts

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#481496 15-Jun-2011 14:32

timtim:
wellygary:
timtim: I mean closing Kiwisaver acount completely

Why?, What has changed since you decided to join a year ago?

I'm unemployment and since I joined I received $1000 kick start .Now the balance of it is only $900 and something ....that's the reason why I wanna close it completely .

The government didnt give you $1,000 just so you could close your account in a years' time. Are you hoping to get the $900 out when you close your account? Not likely.

AFAIK, you can go on a contribution holiday but you're unemployed so no contributions anyway (it's a shame you haven't been able to contribute $1040 of your own money this year to get the MTC).

If you had financial troubles you could get your money back, but you haven't put in any money yourself so there's nothing for you to get.

If you are moving overseas permanently you could get the kickstart but doesn't sound like that's what you're doing.

If you are dying or permanently disabled you could also get it all but, again, it doesn't sound like that's what's happened.

To lose $100 on your account must be a combination or poor returns and account charges. Who is your kiwisaver with? You could think about changing to a less risky investment (e.g. cash) and/or one of the providers with lower fees.

I have to wonder why you joined if you were unemployed, and why you changed providers?

wellygary

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#481501 15-Jun-2011 14:36

timtim:

I'm unemployment and since I joined I received $1000 kick start .Now the balance of it is only $900 and something ....that's the reason why I wanna close it completely .

The Kickstart is not a gift of $1000 to you, it is a reward for committing to joining a saving scheme that locks your money in (hardship and other excluding excluded) until retirement.

It is not designed for you to withdraw your money from whenever it goes down.

When you next get a job you will again start contributing and your balance will go up, stop worrying....

nigelj

856 posts

Ultimate Geek
+1 received by user: 125

#481502 15-Jun-2011 14:36

jbard: How can your balance have gone down $100?

Easy, all $100 went into growth/aggressive growth funds, recession = stock market/real estate not doing as well as it could. Take out management fees (some charge crazy $$$), taxes etc.

To the O.P. , my recommendation, just change Kiwisaver provider, I had my Kiwisaver originally through Nat Bank (the ING now OnePath setup) and always felt that the funds the money was in weren't performing that great, switched to ASB and the fees seem to be quite a bit lower, and it's not doing too bad.

Ask around friends/etc what schemes they are under, and definitely consider which fields you want your money in.

But you are going to have to contribute 2/3/4 (or whatever it is now since it got messed with) from future PAYE/taxable income to your Kiwisaver account, a good reason why I think parents shouldn't enrol their children in it at such a young age, needs to be a conscious choice, or enforced for everyone (ala Aussie Super)

(naturally, none of us are financial advisors, so take what we say with a grain of salt)

mattwnz

20515 posts

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#481516 15-Jun-2011 14:56

timtim:
jbard: How can your balance have gone down $100?

I think that because the scheme provider charged

Did you not read all the terms before signing up?

You can only opt out within a certain period of time, if you were automatically signed up when you started a new job. Otherwise you can go on a contributions holiday indefinitely. Eventually kiwisaver is likely to to become compulsory anyway, due to NZers very poor savings record, and a large percentage of people have now signed up. So probably you didn't make a mistake by joining, as you still got you free $1000, and you can still get up to about $1000 extra free a year(failing to half that from next year) if you contribute about that yourself. It is still a good scheme, although things may change in the future.

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