Mr Lance Dawber-Ashley

Transcription

1 Mr Lance Dawber-Ashley Wealth Adviser Kiwi Wealth Wellington 16:30-17:25 WS #166: Kiwisaver - The Key Benefits For Your Financial Health 17:35-18:30 WS #178: Kiwisaver - The Key Benefits For Your Financial Health (Repeated)

2 An introduction to KiwiSaver and Kiwi Wealth Rotorua and Christchurch GP Conferences Lance Dawber-Ashley Authorised Financial Adviser, Kiwi Wealth Limited June 2018

3 Today s agenda Brief history and overview of KiwiSaver Overview of Kiwi Wealth What this means for you

4 Insert appropriate image Why was KiwiSaver started?

5 "KiwiSaver aims to improve the long term savings habits of New Zealanders and builds on our efforts to better prepare the country for the challenges of an ageing population." Dr Michael Cullen Finance Minister, 2007 Source: Wikipedia

6 KiwiSaver is a voluntary, work-based savings initiative What is KiwiSaver? KiwiSaver savings are made up of contributions to a member s account, plus or minus investment returns, minus any withdrawals, fees and taxes. Most people enter the scheme when they start working, and become eligible to get their money when they are 65 years old (provided they have been a KiwiSaver member for a minimum of 5 years). Members can also use it to save a deposit for their first home.

7 KiwiSaver basics Eligibility criteria applies Accessing your money First home withdrawal Making contributions In general, you can join if you are a NZ citizen, or entitled to live in NZ indefinitely, and living or normally living in NZ, and below the age of eligibility for NZ Super (currently 65). Once enrolled your money is locked in until you reach 65 (or are eligible to withdraw). Your KiwiSaver account could be used to help buy your first home. Employees can choose to contribute 3%, 4% or 8% of their gross (before tax) wage or salary to their KiwiSaver account. Additional contributions Member tax credits KiwiSaver is an investment Understand risk You can make additional contributions too these Along with KiwiSaver employer contributions, It s not a savings account your KiwiSaver account You need to select an appropriate investment fund are called voluntary contributions. there's an annual KiwiSaver government contribution for eligible members who balance can go up and down. based on your investment timeframe and risk tolerance. contribute.

8 Key benefits of KiwiSaver - self employed Flexible payments You don t have to contribute a set percentage of your pay. Instead you can agree your contribution level with your KiwiSaver scheme provider and stop and start contributions when you like. Note: PAYE If you are self-employed and your income is subject to PAYE deductions, you will be considered an employee for the purposes of KiwiSaver. This means the KiwiSaver contributions minimum of 3% will continue to be deducted from your gross salary or wage, and you must also make the minimum employer's contribution of 3%. Member tax credits To help you save, the Government will make an annual contribution towards your KiwiSaver account as long as you re a contributing eligible member aged 18 or over The member tax credit is paid each year (around July/August) To get the full member tax credit automatically you have to contribute at least $1, a year. Note - If you join KiwiSaver part-way through a year (1 July to 30 June), you ll receive a member tax credit based on the number of days in the year you ve been a member.

9 KiwiSaver has been a success The initiative s goal of encouraging people into retirement savings schemes has exceeded expectations. 15% 75+% Before KiwiSaver Prior to its introduction, just 15 per cent of the workforce was enrolled in a workplace savings scheme. By 2016 By 2016, more than threequarters of New Zealand's year-olds were enrolled.

10 Ask yourself: Do you have your head in the sand? How much do you know about your KiwiSaver investment? 20% MTCs When did you last review your KiwiSaver investment fund? About 20% of members stay in the default investment fund they were first assigned to. Have you gotten your Member Tax Credits? Every year, millions of dollars of Member Tax Credits from the Government are not claimed.

11 Why don t Kiwis care more? KiwiSaver, by design is set and forget Psychology - our brains are our worst enemies Pictures Tools that allow Competing with life s priorities We are competing for attention people companies People don t naturally trust the financial services industry

12 Insert appropriate image Kiwi Wealth 101

13 About Kiwi Wealth $5b+ New Zealand owned and managed We re ultimately owned by the NZ Super Fund, ACC and NZ Post. Our entire team is based here in New Zealand. Largest NZ owned KiwiSaver scheme provider More than 190,000 KiwiSaver members in the Kiwi Wealth KiwiSaver Scheme. More than $5.0 billion funds under management With more than $3.6 billion managed for Kiwi Wealth KiwiSaver Scheme members.

14 Investment fund options Cash CashPlus Conservative Default Balanced Growth

15 Look beyond the balance You might know your KiwiSaver balance, but what s beyond that? What does your KiwiSaver scheme provider actually provide? We support you to succeed We work hard to help protect and grow your wealth We share your Kiwi values

16 We support you to succeed Local Support Our New Zealand based specialist customer service team is there to answer all your questions. Transparent We re totally transparent about your fees and investments, right down to each individual share, bond and dollar. Expert Advice We have a team of financial advisers on hand to answer questions.

17 Future You Take control of your KiwiSaver investment Set a goal Pick a retirement savings goal and find out how much it might cost or create your own retirement goal Get an estimate See what your projected estimated KiwiSaver balance could be when you turn 65 The Future You tool is available to members who are aged between and who have not made a transfer from an Australian complying superannuation scheme. Future You is a registered trademark of Kiwi Wealth Limited. Make changes Track and make changes to your KiwiSaver account on the spot More features coming Regularly adding features to Future You : automated financial advice and combined KiwiSaver balance on the way

18 Best Overall KiwiSaver What our Member customers say about us Experience Award in 2017 The smarts behind Kiwi Wealth s Future You tool and its success with helping KiwiSaver members make good retirement decisions have raised the bar for how a provider can communicate with its members. Richard Klipin, Workplace Savings NZ

19 We work hard to help protect and grow your wealth

20 Our approach to investing We actively manage all the investment funds in our scheme, working hard to deliver the best outcomes, rather than just passively following the market. We spread risk by diversifying our members assets across a wide range of Expert, in-house investment management investments that behave differently in different markets, so you don t have all your Global investment strategy Balancing wealth protection and growth eggs in one basket. At the same time, we also invest a portion of the assets in a way that we consider may do best when stock markets fall. These assets can help shield you from the full impact of market falls.

21 Proven performance 3 years (pa) 5 years (pa) 10 years (pa) Cash 2.09% 2.31% CashPlus 2.26% 2.39% Default 3.73% Conservative 3.20% 4.19% 3.99% Balanced 4.99% 7.75% 5.09% Growth 6.48% 11.10% 5.64% As at 30 April 2018 Past performance is no indicator of future performance. The value of investments in the Kiwi Wealth KiwiSaver Scheme (including returns) can decrease as well as increase. No one, including Kiwi Wealth Investments Limited Partnership or Kiwi Wealth Limited guarantees the return of capital or income from any of our investment funds. No investment risk management strategies can eliminate investment risk.

22 We share your Kiwi values

23 Responsible investment 100% 100% Responsible investment Our Responsible Investment Policy applies to all of our investment decisions Incorporating environmental, social and governance (ESG) principles into the investment process Zero tolerance exclusions list

24 Responsible investment All of the investment funds in the Kiwi Wealth KiwiSaver Scheme are certified by the Responsible Investment Association Australasia (RIAA), the key local industry body representing responsible and ethical investors across Australia and New Zealand.

25 Kiwi Wealth provides a range of tools and resources Easy to use tools E-books and guides Pictures Tools that allow people The Junction Videos companies Regular updates and blogs

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27 Awards and accolades New Zealand International 2017 Workplace Savings NZ Excellence in Communication award 2017 Workplace Savings NZ Best Overall KiwiSaver Member Experience award 2018 Eddy Awards Ongoing Investment Education second equal 2017 Pensions and Investments WorldPensionSummit 2017 Innovation Awards - Innovation in Communications runner up 2017 Plain English awards Finalist for our Annual Report in both People s Choice Best plain English communication and Best plain English annual report All investment funds in the Kiwi Wealth KiwiSaver Scheme are certified as responsibly invested by the Responsible Investment Association Australasia (RIAA), the key local industry body representing responsible and ethical investors across Australia and New Zealand.

28 What do our members think? easy tools to use to work out the best plan for your situation. They ask your opinion and someone got back to me with advice about my plan. A known successful brand, reliable, honest with fantastic online services who are and continue to deliver great returns. More importantly they build great customer relationships by answering any queries you may have. They provide a good return, online facilities are easy to use, financial information is easy to understand providing analysis of contributions and earnings. Investment information is explained in easy to understand terms.

29 Keen to find out more? Join the Kiwi Wealth KiwiSaver Scheme online If you re not with us and would like to join, you can join online. Go to kiwiwealth.co.nz Find out more If you want to find out more about the Kiwi Wealth KiwiSaver Scheme, please download and read the Product Disclosure Statement.

30 Any questions? Kiwi Wealth is the issuer and manager of the Kiwi Wealth KiwiSaver Scheme. The Product Disclosure Statement for the Kiwi Wealth KiwiSaver Scheme is available at