Maximise your financial benefits
Under certain (e.g. RMO and SMO) employment agreements, you're entitled to an additional 6% of your salary to be paid into a superannuation scheme.
Any money you contribute from your salary directly into a KiwiSaver scheme or an approved superannuation scheme will be matched by your DHB dollar for dollar* (up to a maximum of 6% of your salary). You don’t have to contribute the full 6%, but doing so effectively increases your pay by the maximum amount.
You can split your payments across both KiwiSaver and superannuation schemes. Different DHBs may have restrictions around the splitting options.
*Employer contributions are subject to Employer Superannuation Contribution Tax. This is a tiered rate, capped at tax of 33% for salaries of more than $84,000.
Key differences - KiwiSaver vs. superannuation schemes
KiwiSaver schemes are superannuation schemes with a number of prescribed rules and benefits. Their features include:
- Contributions can be 3% (the minimum level), 4%, 6%, 8% or 10% of your salary.
- The Government will match every dollar you contribute with 50c, up to a maximum of $521.43 per annum (i.e. you will need to contribute a minimum of $1042.86 per annum to receive the full entitlement).
- First Home Withdrawal benefits – after three years in KiwiSaver you may be able to make a withdrawal to assist with the purchase of your first home.
- Funds are locked away until the age of eligibility for NZ Superannuation (currently 65), with exceptions such as the first home withdrawal benefit and permanent emigration.
Superannuation funds provide an effective means of saving for your retirement. The Medical Assurance Society Retirement Savings Plan is locked in for a lesser timeframe than KiwiSaver, providing an added level of flexibility around when you can withdraw. Unlike KiwiSaver, contributions can be any amount you choose.
Splitting your contributions
Once you’ve decided how much to contribute, you then need to decide where to invest. Should this be in KiwiSaver or superannuation, or a combination of both? In general, contributing to a KiwiSaver scheme allows you to maximise your benefit by taking advantage of the special benefits on offer. A KiwiSaver scheme also allows you to save for your first home.
If you are contributing your full 6%, and wish to split your contributions between KiwiSaver and superannuation, remember that you must contribute a minimum of 3% to KiwiSaver.
The Trustees of the Medical Assurance Society KiwiSaver/Retirement Savings Plans (the Plans) are the issuer and manager of the Plans. Copies of the Product Disclosure Statements (PDS) are available here and here. If you would like to talk to a MAS adviser, phone 0800 800 627 or email email@example.com. Investments in the Medical Assurance Society KiwiSaver and/or Retirement Savings Plan(s) are not guaranteed. Although care has been taken to ensure the accuracy of this information, MAS does not assume any liability arising out of its use.