Q&As: Couple approaching retirement should spend most of their savings on paying off their mortgage; Yes, you can get KiwiSaver tax credits as well as NZ Super; Reader who distrust government confuses KiwiSaver with NZ Super Fund; Was this column wrong last week about withholding tax on interest paid on a loan within a family?
Good fairy turbocharges lower income people’s savings. You’re struggling on a low income, as a part-time or full-time worker. All this talk about saving is fine for those making plenty, but you feel you can’t spare anything. Fair enough. Enter the Good Fairy. “How about a deal?” she says. “If you can set aside just a few dollars a week, I will multiply your savings five-fold, eight-fold, thirteen-fold — the lower your income the more I will boost your savings. It will really help you get ahead in the long term. Interested?”
Q&As: Terminally ill reader should get his money out of KiwiSaver and eat, drink and be merry; Reader on invalids benefit can benefit from joining KiwiSaver — and an obliging friend could make it work better for both of them; Many employee KiwiSavers will be better off reducing their contributions to 2 per cent after April 1 — but not all; Lending within the family can get complicated when it comes to withholding tax on interest.