- 1
What is the smallest contribution that I can make every month?
If you are working, the minimum monthly contribution is 2% of your pay before tax.
If you are not working, you can make voluntary contributions of at least $50 per month direct to WIKS, or make occasional lump sum contributions of at least $500.
- 2
Does my employer contribute to WIKS?
If your employer normally contributes to your superannuation you can ask them to pay some of those contributions to WIKS. Employer contributions matching yours up to a maximum of 2% will not have any superannuation withholding tax deducted, which means that more money will go into your account.
- 3
What is the government contributing?
The government is contributing:
- a $1,000 kick start which will be paid three months after you make your first contributions
- a tax credit matching your contributions up to a maximum of $20 per week.
- 4
How do I get my tax credits?
As long as you make contributions during the year you will automatically get your tax credits. The tax credit year runs from 1 July to 30 June. After 30 June each year WIKS will make a claim to IRD on your behalf for your tax credits. IRD will pay the amount to Wiks to be added to your account. As long as you contribute the equivalent of at least $20 per week you will receive the maximum tax credits.
In your first and last year’s of membership the tax credits will be pro rated for the number of week’s membership in that year.
- 5
Can I split my contributions between investment strategies?
Yes, but only in whole percentages. For example if you are contributing 4% you can put 1% in the conservative strategy and 3% in the balanced strategy. If you are also a member of WISF you can have different strategies for the two schemes.
- 6
Can I stop contributing?
After you have contributed to Wiks for twelve months you can apply to the IRD for a contributions holiday. The contributions holiday can be for as little as three months or as long as five years. They can also be rolled over. If you are also a member of WISF, taking a contributions holiday may affect your entitlements under that scheme, particularly your entitlement to a death benefit.
- 7
When can I get my super from WIKS?
When you reach age 65 or have been a member for five years, whichever is later.
- 8
- What if I am ill or leaving the country?
- Subject to criteria set out in the KiwiSaver rules, in circumstances of ill-health, disability, financial hardship or permanent emigration you can withdraw some of your KiwiSaver account. You cannot generally withdraw the kick start or the tax credits.
- 9
- When I retire do I have to take a lump sum payment?
- No you don’t. You have two other options.
- You can defer payment of all or part of your benefit for as long as you like. If you choose this option then the Trustees will continue to invest your savings for you but you can make part withdrawals from time-to-time including regular monthly withdrawals.
- You can use all or part of your benefits to buy a pension from the Fund which will be paid to you for the rest of your life.
- 10
What happens to my Wiks account if I die?
If you die your estate will be entitled to the total value of your WIKS account. It may also be entitled to an additional death benefit based on your age, contribution rate and earnings. This only applies if both you and your employer are contributing at least 4% at the time of your death. The Trustees will pay your benefits to the person that you have named as your executor (the person to look after your estate for you). If you are leaving your benefits to a spouse or partner your executor can choose to defer payment of the benefits and arrange for your beneficiary to make withdrawals in the future in the same way that you would have been able to.
- 11
- Can I use my benefits as security for a loan?
- No you can’t. The KiwiSaver Act strictly forbids this. Your superannuation benefits are for your retirement and no other party can have a claim on them.
