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kebakat 
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Joined: 01 January 1900
Location: Palmy North
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 Topic: Kiwisaver and kids
Posted: 03 July 2008 at 4:46pm |
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I'm not sure I heard this right on the tv the other morning so I wondered if anyone here knows (a friend of mine is eager to know about this)..
If you sign your child up for kiwisaver, when they start work do they HAVE to contribute to kiwisaver automatically, can they or can they not opt out?
The way that I thought I heard it (I was feeding Daniel at the time so wasn't paying great attention to it).. was that parents sign their kids up now, then years down the track they get their first job and the 4 or 8% is automatically deducted and they have no choice about it at all... Did I hear right?
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fire_engine
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Joined: 03 November 2007
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Posted: 03 July 2008 at 4:51pm |
Yep, you heard right. Even if you sign your kid up (ie they had nothing to do with it), if they remain signed up, they have to contribute as soon as they start earning. The kid on FairGo managed to get ASB to release him from it I think (he was 17 and his Dad signed him up without telling him  ) and he was getting money deducted. Don't know if someone can clarify about whether he definitely got out of it. The experts they quoted said the govt didn't really think the whole thing through for under 18s so they're now finding lots of problems.
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Mum to two wee boys
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nikkitheknitter
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Posted: 03 July 2008 at 4:53pm |
You'd hope by the time our kids get to that age they'll have sorted it out. hehe
I'd make Hannah anyway 
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ellen
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Posted: 03 July 2008 at 4:55pm |
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Yes I think that's right. Even if they didn't join up now they would still have to join up when they start their first job (that's if it's still around).
The Government kick starts it off with $1k contribution and you can add to it as well until they start earning.
I think if you start a new job now you have to join up and the only way you can opt out is if you have an alternative superannuation scheme in place.
Hopefully I'm not putting you off track - someone else will probably have a definite answer though.
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kezplanet
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Posted: 03 July 2008 at 5:07pm |
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you still have 3 months to opt out of kiwisaver when you start a new job, but the other stuff bout signing kids up is what I heard also, I think they are now looking into making some changes to allow for kids that have been signed up by parents, but I wouldn't be holding my breath for any changes fast lol
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Kerryn, Mum to
Ashlyn(29/3/04), Anastasia(1/11/05) & Abigail (24/02/09)
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Lulu
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Posted: 03 July 2008 at 5:50pm |
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I would imagine that the opting out clause is fairly temporary (while people get use to the idea). This scheme will be compulsory for all income earners within a few years. That was the word from our bank manager yesterday - he is from ASB which is one of the kiwisaver providers. It was only an 'educated opinion' - but I think it's probably pretty accurate.
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kebakat
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Posted: 03 July 2008 at 6:43pm |
DH opted out of kiwisaver and we haven't signed Daniel up so we don't give a rats about it lol.. but my buddy does 
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busymum
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Location: New Zealand
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Posted: 03 July 2008 at 8:25pm |
eeek the more I hear about KS the more nervous I become!! Jeepers!! I would rather have a dedicated savings account (requiring my signature and someone else's like my dad's or something so I can't get my hands on it too easily, if I was bad on spending) for my kids than all that fuss 
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Kiwisaver and kids