Latest news with #NationalCapital
Scoop
27-05-2025
- Business
- Scoop
Why The Government Contribution To KiwiSaver Is Still Worth It
Press Release – Generate KiwiSaver Whats a mere $260.72 worth anyway? It might not seem like much, but thanks to compounding returns over time, it can still add up to quite an impressive sum. Why $260.72 is still worth it From July 2025, the annual government contribution will be decreased to 25 cents for each dollar a member contributes – the maximum top-up will be $260.72. What's a mere $260.72 worth anyway? It might not seem like much, but thanks to compounding returns over time, it can still add up to quite an impressive sum. If you contributed enough to get the government contribution every year from age 30-65 and were in an aggressive fund, you could have approximately $137,873.38 by the time you withdrew at age 65 (ignoring tax and inflation). That's even if you only made the minimum $1,042.86 contribution each year and never made any additional contributions via wages or salary, nor got any employer contributions. To put the spotlight just on the amount the Government puts in (setting aside the $1,042.86 contribution you'd have to make to trigger it [1]), this figure could potentially triple over the 35-year lifespan of the KiwiSaver investment. The Government's $260.72 over 35 years is just over $9125.2, but it could be worth more than $27,575.10 at retirement thanks to returns at an assumed rate of 5.5%, which compound over time. Again, we've ignored tax and inflation, to keep it simple. Note: These assumptions use a 5.5% return rate, in line with government-prescribed assumptions for projecting returns on aggressive KiwiSaver funds, even though this is a relatively conservative estimate for many growth-oriented investments. For example, Generate's Focused Growth KiwiSaver Fund has delivered an annualised return of 9.25% since inception (as at 30 April 2025) — almost double the government's prescribed projection rate for aggressive funds. Smart savers don't miss out As these calculations show, the Government contribution to KiwiSaver is still of value, and KiwiSaver members will do well to try and achieve it every year they're eligible. However a report by financial advisory service National Capital estimates nearly a million people are missing out on it each year. [2] At Generate we're proud to say that more than 85 percent of our members received the Government contribution in 2024 – that was a bonus of almost $54 million ($53,945,801.84 to be exact.) That high ratio has been a consistent trend with our Generate members, and we attribute it to the power of advice. More than 90 per cent of our members have received a KiwiSaver advice session with us, we believe that keeps them informed and empowered to maximise their KiwiSaver investment. It also helps that they can see how they're tracking in our Generate app, which notifies them if there's a shortfall they need to make up by June 30. With markets in an era of volatility, KiwiSaver investment returns can be very unpredictable. Even though it's now reduced, a sure bet like the Government contribution is definitely still worthwhile. Background – key changes to the government contribution The Government contribution has always been a key benefit of KiwiSaver, ever since the scheme launched in July 2007. The latest Government budget, delivered on May 22, cut this bonus in half. From July 2025, the annual government contribution will be decreased to 25 cents for each dollar a member contributes – the maximum top-up will be $260.72. Previously, there was an annual top-up of $521.43, if you contributed $1,042.86 to your KiwiSaver account between 1 July of the previous year and 30 June of the current year (so long as you met the eligibility criteria [3]). This was 50 cents to every dollar. What's more, those who earn over $180,000 per year will now not receive the Government contribution at all. According to the IRD [4], as of 2024, 3.4% of wage and salary earners in New Zealand earned $180,000 or more, which is also when the top tax bracket kicks in. These changes are expected to save the Government up to $3 billion over the next four years. In positive news, Finance Minister Nicola Willis said the Government would start paying the Government contribution to 16- and 17-year-olds.
Scoop
27-05-2025
- Business
- Scoop
Why The Government Contribution To KiwiSaver Is Still Worth It
Press Release – Generate KiwiSaver Whats a mere $260.72 worth anyway? It might not seem like much, but thanks to compounding returns over time, it can still add up to quite an impressive sum. Why $260.72 is still worth it From July 2025, the annual government contribution will be decreased to 25 cents for each dollar a member contributes – the maximum top-up will be $260.72. What's a mere $260.72 worth anyway? It might not seem like much, but thanks to compounding returns over time, it can still add up to quite an impressive sum. If you contributed enough to get the government contribution every year from age 30-65 and were in an aggressive fund, you could have approximately $137,873.38 by the time you withdrew at age 65 (ignoring tax and inflation). That's even if you only made the minimum $1,042.86 contribution each year and never made any additional contributions via wages or salary, nor got any employer contributions. To put the spotlight just on the amount the Government puts in (setting aside the $1,042.86 contribution you'd have to make to trigger it [1]), this figure could potentially triple over the 35-year lifespan of the KiwiSaver investment. The Government's $260.72 over 35 years is just over $9125.2, but it could be worth more than $27,575.10 at retirement thanks to returns at an assumed rate of 5.5%, which compound over time. Again, we've ignored tax and inflation, to keep it simple. Note: These assumptions use a 5.5% return rate, in line with government-prescribed assumptions for projecting returns on aggressive KiwiSaver funds, even though this is a relatively conservative estimate for many growth-oriented investments. For example, Generate's Focused Growth KiwiSaver Fund has delivered an annualised return of 9.25% since inception (as at 30 April 2025) — almost double the government's prescribed projection rate for aggressive funds. Smart savers don't miss out As these calculations show, the Government contribution to KiwiSaver is still of value, and KiwiSaver members will do well to try and achieve it every year they're eligible. However a report by financial advisory service National Capital estimates nearly a million people are missing out on it each year. [2] At Generate we're proud to say that more than 85 percent of our members received the Government contribution in 2024 – that was a bonus of almost $54 million ($53,945,801.84 to be exact.) That high ratio has been a consistent trend with our Generate members, and we attribute it to the power of advice. More than 90 per cent of our members have received a KiwiSaver advice session with us, we believe that keeps them informed and empowered to maximise their KiwiSaver investment. It also helps that they can see how they're tracking in our Generate app, which notifies them if there's a shortfall they need to make up by June 30. With markets in an era of volatility, KiwiSaver investment returns can be very unpredictable. Even though it's now reduced, a sure bet like the Government contribution is definitely still worthwhile. Background – key changes to the government contribution The Government contribution has always been a key benefit of KiwiSaver, ever since the scheme launched in July 2007. The latest Government budget, delivered on May 22, cut this bonus in half. From July 2025, the annual government contribution will be decreased to 25 cents for each dollar a member contributes – the maximum top-up will be $260.72. Previously, there was an annual top-up of $521.43, if you contributed $1,042.86 to your KiwiSaver account between 1 July of the previous year and 30 June of the current year (so long as you met the eligibility criteria [3]). This was 50 cents to every dollar. What's more, those who earn over $180,000 per year will now not receive the Government contribution at all. According to the IRD [4], as of 2024, 3.4% of wage and salary earners in New Zealand earned $180,000 or more, which is also when the top tax bracket kicks in. These changes are expected to save the Government up to $3 billion over the next four years. In positive news, Finance Minister Nicola Willis said the Government would start paying the Government contribution to 16- and 17-year-olds.
Scoop
27-05-2025
- Business
- Scoop
Why The Government Contribution To KiwiSaver Is Still Worth It
Why $260.72 is still worth it From July 2025, the annual government contribution will be decreased to 25 cents for each dollar a member contributes – the maximum top-up will be $260.72. What's a mere $260.72 worth anyway? It might not seem like much, but thanks to compounding returns over time, it can still add up to quite an impressive sum. If you contributed enough to get the government contribution every year from age 30-65 and were in an aggressive fund, you could have approximately $137,873.38 by the time you withdrew at age 65 (ignoring tax and inflation). That's even if you only made the minimum $1,042.86 contribution each year and never made any additional contributions via wages or salary, nor got any employer contributions. To put the spotlight just on the amount the Government puts in (setting aside the $1,042.86 contribution you'd have to make to trigger it [1]), this figure could potentially triple over the 35-year lifespan of the KiwiSaver investment. The Government's $260.72 over 35 years is just over $9125.2, but it could be worth more than $27,575.10 at retirement thanks to returns at an assumed rate of 5.5%, which compound over time. Again, we've ignored tax and inflation, to keep it simple. Note: These assumptions use a 5.5% return rate, in line with government-prescribed assumptions for projecting returns on aggressive KiwiSaver funds, even though this is a relatively conservative estimate for many growth-oriented investments. For example, Generate's Focused Growth KiwiSaver Fund has delivered an annualised return of 9.25% since inception (as at 30 April 2025) — almost double the government's prescribed projection rate for aggressive funds. Smart savers don't miss out As these calculations show, the Government contribution to KiwiSaver is still of value, and KiwiSaver members will do well to try and achieve it every year they're eligible. However a report by financial advisory service National Capital estimates nearly a million people are missing out on it each year. [2] At Generate we're proud to say that more than 85 percent of our members received the Government contribution in 2024 – that was a bonus of almost $54 million ($53,945,801.84 to be exact.) That high ratio has been a consistent trend with our Generate members, and we attribute it to the power of advice. More than 90 per cent of our members have received a KiwiSaver advice session with us, we believe that keeps them informed and empowered to maximise their KiwiSaver investment. It also helps that they can see how they're tracking in our Generate app, which notifies them if there's a shortfall they need to make up by June 30. With markets in an era of volatility, KiwiSaver investment returns can be very unpredictable. Even though it's now reduced, a sure bet like the Government contribution is definitely still worthwhile. Background - key changes to the government contribution The Government contribution has always been a key benefit of KiwiSaver, ever since the scheme launched in July 2007. The latest Government budget, delivered on May 22, cut this bonus in half. From July 2025, the annual government contribution will be decreased to 25 cents for each dollar a member contributes – the maximum top-up will be $260.72. Previously, there was an annual top-up of $521.43, if you contributed $1,042.86 to your KiwiSaver account between 1 July of the previous year and 30 June of the current year (so long as you met the eligibility criteria [3]). This was 50 cents to every dollar. What's more, those who earn over $180,000 per year will now not receive the Government contribution at all. According to the IRD [4], as of 2024, 3.4% of wage and salary earners in New Zealand earned $180,000 or more, which is also when the top tax bracket kicks in. These changes are expected to save the Government up to $3 billion over the next four years. In positive news, Finance Minister Nicola Willis said the Government would start paying the Government contribution to 16- and 17-year-olds.
Yahoo
22-05-2025
- Yahoo
Ottawa traffic to feel impact of royal visit on Monday and Tuesday
The City of Ottawa says 'significant' traffic and transit disruptions are expected during the May 26-27 visit to the national capital by King Charles and Queen Camilla. In an advisory posted online Thursday, the city said it was working closely with the RCMP, Ottawa Police Service and other security partners 'to ensure that the safety of the King, Queen and our residents is maintained during the visit.' The notice said traffic would be disrupted on several roads, with some closures lasting multiple hours. Monday, May 26 — temporary closures between 1 p.m. and 4 p.m.: Airport Parkway / Bronson Avenue between Airport Parkway and Colonel By Drive Colonel By Drive between Airport Parkway and Rideau Street Sussex Drive between Rideau Street and Rideau Gate Elgin Street between Wellington Street and Laurier Street Findlay Avenue Torrington Place Queen Elizabeth Drive between Airport Parkway and Princess Patricia Way Princess Patricia Way Hunt Club between Riverside Drive and Airport Parkway Tuesday, May 27 — full closures between 5 a.m. and 1 p.m.: Rideau Street between Dalhousie Street and Sussex Drive Wellington Street between Lyon Street and Sussex Drive Lyon Street, Kent Street, Bank Street, O'Connor Street and Metcalfe Street between Wellington Street and Queen Street Elgin Street between Wellington Street and Laurier Street Sussex Drive and Mackenzie Avenue between the Alexandra Bridge and the intersection of Wellington Street and Rideau Street Colonel By Drive between the intersection of Wellington Street and Daly Avenue Morning and afternoon commutes on Monday and Tuesday are not expected to be significantly impacted, the city said, but for security reasons the exact details and timing of road closures and other impacts to city services may be communicated at the last minute. When the royals' motorcade is in motion, the city's advisory added, the Macdonald-Cartier and Portage bridges will have intermittent and temporary closures in both directions for all vehicle, cyclist and pedestrian traffic. The Alexandra and Chaudière bridges are to remain open in both directions. The city said its online traffic map would have live updates on traffic impacts, which would also be posted on its traffic account on X, formerly Twitter. Some OC Transpo bus routes and Para Transpo service will face delays because of road closures and some routes will include detours during select time periods, the notice said. Customers can obtain updated transit information online at by telephone at 613-560-5000 or on OC Transpo's X account. Para Transpo customers can use My Para Transpo. At this time, the city does not anticipate any impact to its residential waste collection on Monday or Tuesday as a result of the royal visit, the advisory said. Our website is your destination for up-to-the-minute news, so make sure to bookmark our homepage and sign up for our newsletters so we can keep you informed. Ottawa business owners brace for another Canada Post strike Algonquin College program cut hits most vulnerable students, advocates say
