Banqer High - KiwiSaver Quiz

KiwiSaver is a way for you to invest for your retirement.

KiwiSaver is a long-term way of investing for your retirement, or sometimes other big life events.

How would you best explain KiwiSaver to a friend?

• An investment find that you put money into with your employer that you can withraw at any time

• A special KiwiBank savings account that is only for New Zealanders

• A way of putting money away regularly to specifically ave/invest for our retirement

• A special account that people get when they retire that gives them free bus rides and other discounts

KiwiSaver providers are companies that look after and manage your KiwiSaver. In New Zealand there are a bunch of providers that all want you to sign up to KiwiSaver with them.

Who is not an example of a KiwiSaver provider?

• Simplicity

• Booster

• Kiwi Wealth

• The New Zealand Government

Providers have lots of different KiwiSaver funds for you to choose from. These decide how exactly your money is invested. How is a KiwiSaver fund different to a KiwiSaver provider?

• KiwiSaver providers are the government, and KiwiSaver funds is a name for the money they invest in our retirement.

• KiwiSaver funds are the companies, and they all have KiwiSaver providers which can be thought of as the KiwiSaver products.

• KiwiSaver providers and KiwiSaver funds are the same thing, just a different name.

• KiwiSaver providers are the companies, and they all have KiwiSaver funds which can be thought of as the KiwiSaver products.

When you sign up for KiwiSaver you're automatically given a provider and fund. Unless you take charge of things early, when you sign up for KiwiSaver, you'll just be given a default provider and fund. That means that your KiwiSaver will be chosen for you.

How do you change from your default KiwiSaver provider and fund?

• You need to call the IRD who will fo this for you

• You have to seek permission from your default provider, who will approve it if you meet certain criteria.

• You can't. The government only approves so many providers, and this is a way to keep our investments safe.

• You've got to apply with the provider who you want to join, and they'll arrange for your KiwiSaver to be moved across.

You get to decide what percentage of your salary your want to put into KiwiSaver each year. This is your contribution rate. How do you decide how much to put into your KiwiSaver account?

• The government decides how much we all need co contribute and it changes (as a percentage) based on your salary.

• You decide on an amount, say $100, to transfer every time you're paid and set up an automatic payment.

• You can just top it up whenever you want, but need to put at least $1,000 in it a year.

• You pick a contribution rate (either 3%, 4%, 6%, 8% or 10%) and this is taken out of your pay, and put into your KiwiSaver.

Your employer will also be adding money to your KiwiSaver every time you get paid.

Your employer also has to put money into your KiwiSaver too. They get to pick a contribution rate, but theirs is a little different to yours.

How much does your employer contribute to your KiwiSaver?

• They contribute via cash lump sums which depend on your salary. In most cases they pay $500 a year into your KiwiSaver.

• They match the same rate as you, so if you pick 10%, they have to contribute 10% too.

• Nothing

• They get to decide a contribution rate from 3% to 30%.

So long as you're contributing to your KiwiSaver, the government will too. If you're putting money into your KiwiSaver account, the government will put some money in too. You don't have to do anything extra or special. They do this on July 1st each year. You have to be over 18 for the government to contribute you your account.

If you put $5,000 into your KiwiSaver fund account within the year, how much would the government put in?

• $5,000.00

• $2,500.00

• It depends on your contribution rate

• $521.43

You're in control of your KiwiSaver and can make changes regularly. You can change basically everything about your KiwiSaver if you want to.

Which of these can you change regularly?

• Your KiwiSaver fund

• Your contribution rate

• The provider of your KiwiSaver

• All of the above

As KiwiSaver is an investment, your fund will (hopefully) grow your money overtime. What is fund performance?

• How risky your KiwiSaver fund is

• How good your KiwiSaver provider is

• A rating the government gives to KiwiSaver funds based on how risky they are

• How well you KiwiSaver contributions were able to grow during the year

When can you withdraw money from your KiwiSaver?

• When you want to buy your first house that you'll be living in

• If you get into bad trouble with your money and are going to really suffer without it

• When you turn 64 years old

• All of the above