Protecting and helping families since 1985

KiwiSaver and your Prescribed Investor Rate (PIR)

If you’re in KiwiSaver you will have recently been asked by your scheme provider to confirm your ‘Prescribed Investor rate’ (PIR).

 KiwiSaver schemes are required to do this each year.

 Your KiwiSaver is an investment that earns income. All income is subject to tax.
 Your ‘PIR’ is the tax rate that is applied to the income of your scheme.

The table of rates they ask you to look at is confusing but I’m told the format is prescribed by the IRD and can’t be changed.

If I enrolled you in KiwiSaver personally, your PIR is unlikely to be wrong, unless you have had a change in your pay.

So, here’s a simple way to check your PIR;

If your annual earnings* from salary and wages is under $14,500 – your PIR is 10.5%
If your annual earnings* from salary and wages is under $48,000 – your PIR is 17.5%
If your annual earnings* from salary and wages is over $48,000   – your PIR is 28%
  * gross annual earnings before tax and deductions

If you’re still unsure, you are welcome to ask me to help.

If you have a sizable income from investments you need to contact me to verify the correct PIR.

 Hope this helps.   Best wishes

 Mike Bennett

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Mike Bennett

In 1985, after 7 years in the banking industry in NZ & London, Mike Bennett joined the Life Insurance Industry as an adviser. In 2001 he started “Acorn Insurance & Investment Ltd” with the key principle; “to satisfy the insurance and investment needs of New Zealanders with the best products and service possible”. To achieve the guiding principle of “best products and service” the “Acorn” uses various industry research tools to identify the best products and prices to meet our client’s needs. Acorn has agencies with most of New Zealand’s major insurance companies which means we are free to use whichever products best meet our client’s needs. Believing that if we get it right for our clients we will achieve win-win solutions. We also recognise that nearly all insurance solutions are a compromise between the benefits you’d like to have versus the premiums you’re prepared to pay – with this in mind we WON’T be trying to sell you more insurance than you need or want !!

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