Don’t assume anything.
I’d been waiting patiently for my Kiwisaver deductions to start so that I could see exactly how much I would be contributing, and so I could start watching my (and my employer, and the government’s) money grow.
After two fortnights and still nothing, I emailed my provider to find out what was going on.
Apparently new signups are still meant to fill out a KS2 form because although providers handle most of the legwork, they don’t deal directly with employers – they only inform the IRD. And I was told that it could be up to 3 MONTHS before the IRD, in turn, informed my employer to start making deductions.
Imagine. I could have gone for three months without my deductions ever starting!
(If you’re merely switching providers, that’s not a problem. They’ll take care of all the details.)
So, I’m not out by much – just a couple of paychecks, or around $100. What I’m going to do is make a manual payment direct to the IRD once that’s all set up (hopefully I’ll get some sort of confirmation). I’ve been putting all my extra pay straight into savings, so that’s not a problem.
Lessons to take away from this?
One: Resist the urge to spend the extra. I transfer out $400 a week to live on and the rest stays in the bank. Period.
Two: Never assume anything – there are no certainties!