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| Thread ID: 144031 | 2017-06-11 10:48:00 | KiwiSaver - If not working? | James432213 (17469) | PC World Chat |
| Post ID | Timestamp | Content | User | ||
| 1436431 | 2017-06-11 10:48:00 | Basically, I have 38k. I study, "earning" roughly 6k a year from student allowance which ALL goes into saving. I live at home, hence have no expenses. In my situation, is KiwiSaver worth it or would a term deposit be better suited? What interest rate would I be looking at with KiwiSaver? TY |
James432213 (17469) | ||
| 1436432 | 2017-06-11 10:57:00 | I am not an expert. But that government subsidy is hard to beat! |
Digby (677) | ||
| 1436433 | 2017-06-11 11:39:00 | is student allowance regarded as earning ? as that would mean govt is the employer and would match what you put in. i would be inclined to save it in term deposit. once you start a job then setup kiwisaver. |
tweak'e (69) | ||
| 1436434 | 2017-06-11 15:19:00 | is student allowance regarded as earning ? as that would mean govt is the employer and would match what you put in. i would be inclined to save it in term deposit. once you start a job then setup kiwisaver. I wasn't implying that I was truly earning from my student allowance. I didn't think that this form of "income"/allowance would be be accepted and that the govt could be seen as my employer, but you made me think. |
James432213 (17469) | ||
| 1436435 | 2017-06-11 19:29:00 | With interest rates so low a term deposit might not be worth it | gary67 (56) | ||
| 1436436 | 2017-06-11 21:06:00 | In my situation, is KiwiSaver worth it or would a term deposit be better suited? For what? Kiwisaver is not a savings account. You can't touch it until retirement. Perhaps for a house at present, but that's it. And once you've signed, you cannot change your mind, you're stuck with it. Not all kiwisaver plans are the same, some have rather large fees. If you just want to save some money, then a savings account of some sort is better. |
pctek (84) | ||
| 1436437 | 2017-06-12 03:28:00 | For what? Kiwisaver is not a savings account. You can't touch it until retirement. Perhaps for a house at present, but that's it. And once you've signed, you cannot change your mind, you're stuck with it. Not all kiwisaver plans are the same, some have rather large fees. If you just want to save some money, then a savings account of some sort is better. True. " For what? " What situation, at the moment, KiwiSaver or a term deposit would produce the most money, considering I have 38k while receiving a student allowance that all goes into savings and that I'm unemployed. I'm aware KiwiSaver means I'm forever locked in. Based on the replies, I think the better option is to WAIT until I start working because otherwise I will not get the employment benefits (Student allowance doesn't give me this entitlement?) that KiwiSaver gives? So in this context, term deposit rates > KiwiSaver rates? (in terms of net money generated, while studying) Sorry for the confusion. |
James432213 (17469) | ||
| 1436438 | 2017-06-12 03:46:00 | James I think that you should go and talk to one or two KiwiSaver providers like for example ANZ and at least one other. That way you get expert advice rather than making your decision based on our limited experience. | CliveM (6007) | ||
| 1436439 | 2017-06-12 05:09:00 | As long as you don't want it prior to being 65 it's a no brainer. Current term deposit rates are ~3.5% Money over $1042 annually into kiwisaver gets you $521 (a free 50% return on that amount) from govt AND likely returns of between 10% - 15% depending on your scheme. |
fred_fish (15241) | ||
| 1436440 | 2017-06-12 05:54:00 | Mary Holm has done a lot of work on Kiwisaver and has been a Regular on Radio NZ talking on this subject www.maryholm.com |
Lawrence (2987) | ||
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