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The TOWER KiwiSaver Scheme for the self employed or not employed

What does KiwiSaver mean for the self employed or not employed?

The TOWER KiwiSaver Scheme was specifically designed and built for the KiwiSaver environment and it can be an effective investment vehicle for the self employed or the not employed (such as stay-at-home parents).

What are the benefits of joining the TOWER KiwiSaver Scheme?

The TOWER KiwiSaver Scheme is an easy way to save through automatic deductions from your bank account, lump sum payments can also be made at any times. More importantly the Government has provided incentives which make KiwiSaver a very attractive savings option.

For example: if you are over 18 years old and join now, you have the potential to accumulate an investment of up to $11,400 or more over 5 years, and under current legislation half of that is funded by the Government:

* Based on you paying $1,040 a year (or $86.67 a month) to get the maximum benefit from the Government's member tax credit (subject to meeting qualifying criteria)

** No adjustment has been made for investment returns, fees or taxes. The amounts shown are for illustrative purposes only and are in no way guaranteed.

Do I get all the KiwiSaver benefits?

If you are over 18 and are either not employed or are self employed you may be eligible for most of the benefits of a KiwiSaver scheme except for employer contributions. You may be eligible for:

• $1,000 kick-start from the Government
• A member tax credit based on a dollar for dollar contribution matching subsidy from the Government (up to $1,040) paid into your TOWER KiwiSaver account each year (subject to qualifying criteria)
• First home buyer's deposit subsidy after three years, to a maximum of $5,000 after 5 years' membership (subject to qualifying criteria)
  

How do I join?

Once you have read the investment statement, there are two ways to join up to the TOWER KiwiSaver Scheme; you can sign up online or download an application form complete it and send it back to us at Freepost 521, PO Box 11 647, Wellington. Contact us for an investment statement or download one here.

You will be required to verify your identity to us; follow the requests in the online sign up process or see the application form at the back of the investment statement for full details.

What are my investment options?

TOWER KiwiSaver Scheme members get access to five investment funds, covering a range of investment profiles. All TOWER KiwiSaver Scheme funds are managed by an award winning fund manager *, providing you with the potential for amazing results!

The five funds have been selected to provide a range of investment options to suit your needs, and you can choose the one(s) that suits you best.

How much do I have to pay?

If you are self employed, or not employed, there is no minimum payment required under the TOWER KiwiSaver Scheme rules, but to maximise the member tax credit benefits (for over 18 year olds), you should contribute $1,040 each full year to 30 June (this can be paid annually, or on a regular dripfeed basis). You can stop contributions to the TOWER KiwiSaver Scheme at any time.

To contribute on a regular basis, complete the Direct Debit form in the back of the TOWER KiwiSaver Scheme investment statement and send it to TOWER with your completed application form.

How do I choose which investment fund option is right for me?

The TOWER KiwiSaver Scheme gives you the choice of five investment funds with differing profiles. Details are in the investment statement and we do recommend that you work through the 'What is your investment profile?' questionnaire in the investment statement to help determine the appropriate investment  for you.

You can change your investment choice at any time and you may invest in more than one investment fund.

What now?

1. Download and read the TOWER KiwiSaver Scheme investment statement 
2. Review your investment profile in the investment statement
3. Have your IRD number handy
4. Complete the application form online or in the investment statement
5. If you want to make regular payments, complete a direct debit authority form
6. Take a copy of your proof of identity forms
7. Make any initial contribution payment with a cheque made out to the TOWER KiwiSaver Scheme Main Bank Account.
8. Compile the above and send to TOWER at Freepost 521, PO Box 11 647, Wellington
   

What will TOWER do?

We will send you a letter confirming your application, providing you with information on how to access your account balance details online. We will also notify Inland Revenue of your application to the TOWER KiwiSaver Scheme, and if the TOWER KiwiSaver Scheme is the first KiwiSaver scheme you have joined, Inland Revenue will pay the $1,000 Government kick-start into your TOWER KiwiSaver Scheme account (and will also confirm your application).