Many Kiwis don't know which fund they are in or that there could be big differences in outcomes between funds
Many people who have joined KiwiSaver were automatically put into a default fund. These default funds are intended by the Govt to be “parking spaces” before you work out the type of fund appropriate for you.
Your Govt MTC’s could be adding $521.43 to your KiwiSaver account every year.
Millions are being left on the table every year by people who either contribute nothing or just a small amount of money. It’s important you don’t miss out on this Govt contribution unnecessarily as over time it adds up to a big difference to your KiwiSaver account.
Your Prescribed Investor Rate is the tax rate on your KiwiSaver account.
It is either 10.5%, 17.5% or 28% based on your income over the last 2 years.
If your PIR is too high you may end up paying too much tax from your KiwiSaver account, although you may be entitled to a refund. If you are paying too little tax you are liable to pay the difference back to Inland Revenue.