KiwiSaver is a type of superannuation scheme, which is a special type of investment fund with its own legislation.
Super schemes usually invest in a variety of investments – from simple cash accounts to shares and property. You make regular contributions to a super scheme and that money is pooled with other investors to create a single investment fund.
With a super scheme:
You have access to a wide range of investments that you probably wouldn’t have access to if you invested on your own
You choose which type of investment you want your savings to invest in
Your savings are usually locked away until a certain time, or until you reach a certain age
Your returns are taxed and the tax is taken out by your provider before you withdraw your money
When it’s time to withdraw your savings you choose how your money is paid to you – in a lump sum or regular amounts
You can access your money before the time is up if you suffer financial hardship
If you die your money is paid to your estate.
If you’d like to know more about how super schemes work please contact us.
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