making the most of Kiwi Saver
I am seriously thinking of joining Kiwi Saver. Thats because it won't cost me anything, and I will be between $1000 - $2000 better off, depending on my contributions.
I am a student with a small part time job. What I can do is contribute 4% of my small salary - I get the maximum I can get without the student allowance abating - for the required 12 months to qualify for my $1000, and max out on a student loan for course costs to pay for my contribution. Actually I worked out that if I get student allowance and use some of loan for course costs ( books, not fees) to cover my 4% Kiwi Saver payments - my contribution will be well under $1000 to get the $1000 that the government will give me for being in it for a year.
Even better, if I contribute $20.00 a week - or someone else, like parents or partner does - I will *apparently get the maximum associated tax credits* for doing so, and I can pay the whole thing with my interest free loan for course costs AND get the student allowance which I don't have to pay back! Thats because I can get a student allowance as well as an interest free loan for course costs and additional expenses and can use the latter part of that loan for contributions.
Then I can take a payments holiday for up to five years until I finish my degree - while paying our mortgage with our WFF payments. I could also start paying funds into my current super scheme with next years course costs for books - and I can take out such funds at any time to pay any debts I may gave just like heaps of Aussies are currently doing. As a student, any loan up to $5000 has a lower interest than normal and a $1500 interest free overdraft, so if I want money I can get it.
Great! The only thing I have to do is ensure I am working during the holidays, otherwise I will have to pay my contributions through a state-funded benefit until varsity starts next year.
*not sure, someone can correct me if I am wrong.