One of the most common questions I get in my financial literacy sessions is:
"When I withdraw my KiwiSaver, do I have to pay tax on it?"
The answer? No! KiwiSaver payouts are tax-free.
Here’s why:
1️⃣ How KiwiSaver Contributions Are Taxed
- Your contributions: Taken from your wages before PAYE tax.
- Employer contributions: Taxed before entering your KiwiSaver.
- Investment growth & dividends: Taxed at source by fund managers.
✅ By the time you withdraw, everything in your KiwiSaver is yours, tax-free!
2️⃣ Employer Contributions Are Powerful
Don’t underestimate the impact of your employer’s contributions. They’re a key part of your long-term growth. By contributing alongside you, they help your KiwiSaver balance grow faster — all while the tax is already handled.
3️⃣ Stress-Free Investing
With KiwiSaver, you don’t need to worry about tax on your fund’s growth or income. It’s simple, automatic, and stress-free. That’s what makes KiwiSaver one of the most effective tools for building wealth in New Zealand.
4️⃣ Key Takeaways
- Your KiwiSaver contributions are tax-paid before they enter your fund.
- Employer contributions and fund growth are also taxed at source.
- Withdrawals are tax-free, giving you peace of mind for the future.
💡 Tip: Make sure you’re maximizing your KiwiSaver contributions and taking full advantage of employer contributions — they can make a huge difference over time.
Ready to take control of your KiwiSaver and make it work for you?
Book a Consultation today!
Kara Northcott
P.S. Stay tuned for more tips on making money simple, smart, and stress-free.
027 666 6784
📩 kara@financialconsultant.co.nz
🌐 kara-northcott-financial-consultant.kit.com
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