Haven | KiwiSaver Jargon made simple

KiwiSaver

KiwiSaver Jargon made simple

4 MIN READ October 6, 2022

You’ll likely have heard some jargon thrown around when discussing KiwiSaver, but what does it mean? We’ve put together some of the most common KiwiSaver jargon to help you understand just what it’s all about!

Contributions

Contribution – The money that is put into your KiwiSaver fund to invest. This can be from you, your employer or the government.
Member contribution – Quite simply, this is what you are contributing to your KiwiSaver account.
Employer contribution – This is the amount (after tax) that your employer contributes to your KiwiSaver account if you are employed. Your employer pays a minimum of 3% before tax.
Savings suspension – Previously called a contributions holiday, this temporary stop to your KiwiSaver contributions is now called a suspension. You can suspend your KiwiSaver contributions for 3 months to a year if you’ve been contributing for at least 12 months. If you need to extend this period, you’ll need to reapply again for a savings suspension. Stopping your contributions means that you also won’t receive your employer or government contributions.

Funds

Fund – A fund is a pool of money from many people that a fund manager invests. Each KiwiSaver scheme has a number of funds within it to choose from. There are also different types of funds, including conservative, balanced, growth, and aggressive.
Default fund – A fund for KiwiSaver members who haven’t chosen which KiwiSaver scheme they’d like to be a part of. Default funds are typically conservative and low cost. To make the most of your KiwiSaver, default funds should only be used as a temporary solution until you’ve chosen the fund that’s best for you and your situation.
Conservative – Conservative funds tend to have a lower-risk, lower-return model. There will still be ups and downs because KiwiSaver is an investment, but overall you’ll likely see less dramatic changes with this fund.
Balanced – Balanced funds carry a little more risk, but you’ll usually get a little more return with this one too. This is considered a fairly steady fund.
Growth – With a Growth fund, again you’ll see perhaps a higher risk, but also higher returns. You might see a few more ups and downs, but if you don’t plan to use your KiwiSaver for quite some time, a fund like this could be an option.
Aggressive – Aggressive funds tend to be based on a high-risk, high-return model. You’ll likely see more dramatic changes, but in the long run, you may end up with a lot more of a return.

Financial Acronyms

Portfolio investment entity (PIE) – A PIE is a scheme or fund that pays tax on its returns based on your Prescribed Investor Rate (see below). Almost every KiwiSaver scheme is a PIE.
Prescribed investor rate (PIR) – This is the rate at which your returns are taxed when you are in a KiwiSaver scheme that is a PIE (see above). Depending on your circumstances and your taxable income, your PIR could be 10.5%, 17.5% or 28%. It’s important to check that you are on the correct rate to avoid being taxed by default at the highest rate of 28%.
Member tax credit (MTC) – This is what the government contributes to your KiwiSaver each year. While you’re contributing and eligible, the government puts in 50 cents for every dollar that you contribute up to $521 each year. To receive this top up, you need to put in at least $1042 over the course of the year.

Other investment jargon

Growth assets – These are usually shares or property and they’re called growth assets because they have more potential to grow in value over time than income assets. These do often involve more risk and will likely have greater ups and downs in value.
Income assets – Income assets are typically cash or bonds. These kinds of investments receive a regular amount of interest and generally have fewer ups and downs in value than growth assets and involve less risk. They do tend to have lower returns over the long term however.

Still have questions? Get in touch today and we’ll be happy to talk you through it!

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Terms & Conditions

Eligibility.
The Haven My Food Bag Promotion is only open to legal residents of New Zealand who are eighteen (18) years of age or older.To be eligible for the prize you must have a delivery address within the My Food Bag delivery area. My Food Bag delivers to most addresses in the postcodes found here.
Disqualified Participants’ are: (a) all Haven Financial Advisers employees (b) all people under the age of 18 years (c) all people without a qualifying delivery address.
Competition Period.
The Competition begins on Monday 3rd July 2023 to Saturday 30th September 2023.
How To Enter.Complete a financial review with any of Haven’s advisers for any service during the entry period and you will receive one entry into the Competition.
Or,
Refer someone else to complete a financial review with any of Haven’s advisers for any service during the entry period and if they complete the review you will receive one entry each into the Competition.
Drawing the Winners
We will select 3 winners. The final winners will be drawn on Monday 2nd October via random selection by Haven Financial Advisers.Only the person who originally entered the Promotion can be awarded the prize.
The Winners will be determined by Haven Financial Advisers and will be final and no correspondence will be entered into.
The Winners will be notified by email, phone (voice or text), mail or in person. Where attempts to contact a Winner fail (e.g. when the Winner cannot be contacted by phone after three attempts or mail sent is returned) Haven Financial Advisers will select another winner. If, after successful notification, the prize is not collected within two months of being announced, it will be regarded as forfeit. (Note: 3 attempts to contact the Winner will include individual calls to any numbers provided at the time of entry.
Where the Winner is required to claim the prize in person, they must provide proper identification (eg driver’s licence, passport, birth certificate).
The Prizes
The Prizes (8 weekly My Choice (4 nights for 4) My Food Bag deliveries) are not redeemable for cash or transferable. In the event that the Prize specified in the Competition becomes unavailable for any reason, Haven Financial Advisers may substitute a prize of like or equal value.In order to claim the prize the winner will need to sign up to the My Food Bag website to manage their deliveries. In order to sign up a credit or debit card will need to be added to the account for any upgrades or additional grocery items beyond the Prize.
The Winner takes the Prize entirely at his/her own risk and indemnifies Haven Financial Advisers in respect of any claim for any accident, injury, property damage or loss of life that may occur in connection with the prize. The Winner is responsible for all insurance, tax or other costs that may be associated with the Prize. Where the Prize has associated terms and conditions the Winner accepts the Prize subject to those terms and conditions and restrictions.
The Prize must be taken as stated and no compensation will be payable if the Winner is unable to use the Prize as stated.
The Promoter (Haven Financial Advisers Limited) will not be liable for any prize(s) that do not reach the winners for reasons beyond the Promoter’s reasonable control. Where a prize is being supplied by a third party, the Promoter accepts no responsibility in connection with the provision of the prize, including without limitation, the failure of the winner to receive ownership of, or use of, the prize or any performance issues associated with the prize.
The Promoter will not be liable for failure to provide (or delay in providing) the Prize resulting from any events, circumstances or causes beyond its reasonable control, including but not limited to acts of god (natural disasters), acts of war or terrorism, national emergencies, issues of public health and safety, pandemic, mechanical breakdown, industry disputes, riots or failure of communication or power supply or voluntary or involuntary compliance with any regulation, law or order of any government.
Prizes may be subject to additional terms and conditions imposed by a third party.
The Promoter will not be responsible for any loss or damage suffered by entrants or anyone else as a result of, arising out of, or in any way connected with the Promotion or its prizes.
Social Media & Marketing
Where the Promotion is conducted across social media: a. Entrants’ conduct must comply with the rules of that social media platform. b. The Promotion is in no way sponsored, endorsed or administered by, or associated with Facebook, Twitter, Instagram or Snapchat. These social media platforms are in no way responsible for any aspect of the Promotion.By entering this Promotion, entrants agree to the use of their names, photographs and likeness for promotional/advertising purposes, and agree to make themselves reasonably available for this purpose. Any copyright associated with an entry will be owned by the Promoter.
The Promoter collects and holds personal information provided by entrants for the purposes of administering this Promotion and for future Promoter promotional purposes. All personal information provided by entrants will be held by the Promoter and will not be provided to third parties unless otherwise specifically set out. Under the Privacy Act 2020, entrants have the right to access and correct their personal information.

Terms & Conditions

1. Eligibility.

The Haven Travel Promotion is only open to legal residents of New Zealand who are eighteen (18) years of age or older.

Disqualified Participants’ are: (a) all Haven Financial Advisers employees (b) all people under the age of 18 years.

2. Competition Period.

The Competition begins on Monday 13th March 2023 to Wednesday 31st May 2023.

3. How To Enter.

Complete a financial review with any of Haven’s advisers for any service during the entry period and you will receive one entry into the Competition.

4. Drawing the Winner

The final winner will be drawn on Monday 5th June via random selection by Haven Financial Advisers.

Only the person who originally entered the Promotion can be awarded the prize.
The Winner will be determined by Haven Financial Advisers and will be final and no correspondence will be entered into.
The Winner will be notified by email, phone (voice or text), mail or in person. Where attempts to contact the Winner fail (eg when the Winner cannot be contacted by phone after three attempts or mail sent is returned) Haven Financial Advisers will select another winner. If, after successful notification, the prize is not collected within two months of being announced, it will be regarded as forfeit. (Note: 3 attempts to contact the Winner will include individual calls to any numbers provided at the time of entry.
Where the Winner is required to claim the prize in person, they must provide proper identification (eg driver’s licence, passport, birth certificate).

5. The Prize

The Prize (a travel voucher valued at $4,000 NZD) is not redeemable for cash or transferable. In the event that the Prize specified in the Competition becomes unavailable for any reason, Haven Financial Advisers may substitute a prize of like or equal value.
The Winner takes the Prize entirely at his/her own risk and indemnifies Haven Financial Advisers in respect of any claim for any accident, injury, property damage or loss of life that may occur in connection with the prize. The Winner is responsible for all insurance, tax or other costs that may be associated with the Prize. Where the Prize has associated terms and conditions the Winner accepts the Prize subject to those terms and conditions and restrictions.
The Prize must be taken as stated and no compensation will be payable if the Winner is unable to use the Prize as stated.
The Promoter (Haven Financial Advisers Limited) will not be liable for any prize(s) that do not reach the winners for reasons beyond the Promoter’s reasonable control. Where a prize is being supplied by a third party, the Promoter accepts no responsibility in connection with the provision of the prize, including without limitation, the failure of the winner to receive ownership of, or use of, the prize or any performance issues associated with the prize.
The Promoter will not be liable for failure to provide (or delay in providing) the Prize resulting from any events, circumstances or causes beyond its reasonable control, including but not limited to acts of god (natural disasters), acts of war or terrorism, national emergencies, issues of public health and safety, pandemic, mechanical breakdown, industry disputes, riots or failure of communication or power supply or voluntary or involuntary compliance with any regulation, law or order of any government.
Prizes may be subject to additional terms and conditions imposed by a third party (for example, vouchers may have additional terms and conditions and/or an expiry date or in the case of travel, additional terms and conditions may be imposed by airlines, service providers and venues).
The Promoter will not be responsible for any loss or damage suffered by entrants or anyone else as a result of, arising out of, or in any way connected with the Promotion or its prizes.

6. Social Media & Marketing

Where the Promotion is conducted across social media: a. Entrants’ conduct must comply with the rules of that social media platform. b. The Promotion is in no way sponsored, endorsed or administered by, or associated with Facebook, Twitter, Instagram or Snapchat. These social media platforms are in no way responsible for any aspect of the Promotion.
By entering this Promotion, entrants agree to the use of their names, photographs and likeness for promotional/advertising purposes, and agree to make themselves reasonably available for this purpose. Any copyright associated with an entry will be owned by the Promoter.
The Promoter collects and holds personal information provided by entrants for the purposes of administering this Promotion and for future Promoter promotional purposes. All personal information provided by entrants will be held by the Promoter and will not be provided to third parties unless otherwise specifically set out. Under the Privacy Act 2020, entrants have the right to access and correct their personal information.