Questions and Answers

1. There is only one tax rate that is applied to all KiwiSaver investment earnings
A: False

2. All KiwiSaver funds are held by
A: An independent trustee

3. When comparing a default fund to a growth fund over 30 years (for an employed adult on an average income), the difference in the size of the balance at retirement is likely to be?
A: Hundreds of thousands of dollars

4. If a client has workplace super in place and wishes to enrol into KiwiSaver, what is an advisable first step?
A: Confirm suitability of enrolment with payroll before submitting application

5. You may be eligible for a first home withdrawal to help you purchase your first home 3 years after the first contribution is made to your KiwiSaver account
A: True

6. If you are employed (and being paid a salary under PAYE) you’ll need to contribute for 12 months before you can take a ‘contributions holiday’ (ie: stop regular contributions)
A: True

7. Self employed members who pay themselves a salary via PAYE are required to make both employer and employee contributions for the first 12 months of enrolment
A: True. As per the application form – If you pay tax through PAYE you are considered ‘employed’ and will be required to contribute for the first 12 months that you are in KiwiSaver.

8. Why is it important to set your client’s expectations about the type of advice that you can provide?
A: To ensure your client is aware of any limitations regarding the scope of advice (general advice vs personalised), as well as making the client aware that personalised advice is available should it be required.

9. Employees who are on a total remuneration contract may have both the employer and employee amounts deducted from their total remuneration (that is, 6%)
A: True

10. You can withdraw contributions when you reach the age of eligibility for NZ Super or you have been a KiwiSaver member for five years, whichever is later
A: True