With no minimum age to join, the savings incentives attached to KiwiSaver make it a great way to put aside money for your kids' future. The funds will be locked in until age 65 but some amounts can be accessed earlier in certain circumstances, such as buying a first home.
They'll need an IRD number before joining. You can apply for one using an IR595 form, downloadable from the Inland Revenue website. To join, an application form from the Grosvenor KiwiSaver Scheme Investment Statement needs to be completed and returned to you financial adviser. We can suggest an adviser in your area if you don't have one.
An early start works wonders
(and $1,000 for joining doesn’t hurt either)
KiwiSaver members under 18 can still receive the $1,000 kick start to savings provided by the Government.Once they turn 18 they’ll be eligible for tax credits matching contributions made to their account.
Starting early, compound interest and regular savings can do more than you think.The table shows how an account balance could grow with different contribution amounts.
Years
No contributions
$20 / month
$40 / month
5
1,107
2,497
3,886
10
1,250
4,499
7,749
15
1,441
7,179
12,918
20
1,697
10,766
19,835
* Assumes savings earn 6%p.a. net of fees and tax
What contributions are required?
For those not receiving a salary or wages no initial contribution is required, and there is no minimum ongoing contribution level to KiwiSaver. You can choose the contribution amounts and how frequently they are made.
How are contributions made?
Contributions can be made directly to the Grosvenor scheme via direct debit, or by choosing Grosvenor as a bill payee on your internet banking. Any contributions made by cheque need to be paid to IRD (see below).
There are three ways to contribute via IRD. IRD will automatically forward the funds to Grosvenor.
1. Use the “Pay tax” option on your bank’s internet banking facility 2. Pay over the counter at a Westpac bank branch.
3. Sending a cheque to Inland Revenue. You'll need to make the cheque out to Inland Revenue. On the back of the cheque, write the member's IRD number and "KSS" to indicate a voluntary member contribution. Send your cheque to:
Inland Revenue
PO Box 1535
Waikato Mail Centre
Hamilton 3240
What happens if they take on a job?
As a KiwiSaver member, unless your child is on a contribution holiday they’ll have to notify their employer to deduct KiwiSaver contributions from their wages, at a minimum rate of 4% (2% from 1 April 2009).Under the current rules it’s possible to apply for a contribution holiday after being a KiwiSaver member for twelve months.
Where can I find out more about saving for kids?
At Sorted Kids & Money, you'll find games, activities and information designed to introduce kids to important money concept skills they'll need for the future.
Dollar Reef games involves decision making and planning for 5-7 year olds. Money Island games are perfect for beginners 8-10 years old. Cash Cloud games are for expert players 11-12 years old.
So why not give them a go? Click on one of the games below to get started. Each game opens in a new window.
