What is KiwiSaver?
KiwiSaver is a voluntary savings scheme set up by the government to help New Zealanders to save for their retirement.
You can choose to contribute 3%, 4%, 6%, 8% or 10% of your gross (before tax) wage or salary to our KiwiSaver account. Your employer has to contribute as well – at least 3% of your gross salary.
Along with KiwiSaver employer contributions, there’s an annual government contribution as well.
Your savings are invested on your behalf by the KiwiSaver provider of your choice. If you don’t choose a provider, Inland Revenue will assign you to one of the nine default KiwiSaver schemes.
Who can join KiwiSaver
To be able to join KiwiSaver you don’t have to be employed, but you do have to be:
- A New Zealand citizen, or entitled to live in New Zealand indefinitely.
- Living or normally living in New Zealand.
Find out more about who can and can’t join KiwiSaver on the Inland Revenue KiwiSaver website.
How to join KiwiSaver
There are three ways to join KiwiSaver:
- Automatic enrolment when starting a new job
- Opting in through your employer
- Opting in through a KiwiSaver provider
Self-employed? Not currently working? Not a problem – just contact a KiwiSaver provider to sign up and arrange a regular contribution amount. For a list of KiwiSaver providers, see the Inland Revenue KiwiSaver website.
Also, find out more about how to join KiwiSaver on the Inland Revenue KiwiSaver website.
How does KiwiSaver work?
No one has to join KiwiSaver. But if you’re 18 or over and start a new job you’ll be automatically enrolled in KiwiSaver (with some exceptions). And that’s typically a good thing!
Here's how KiwiSaver works:
- If automatically enrolled you can ‘opt out’ (leave KiwiSaver), but only between 2 and 8 weeks of starting a job. Once you join you have to contribute for at least 12 months. (If you’re 18 or younger and have been incorrectly enrolled, you can still opt out through Inland Revenue.)
- You can choose to ‘opt in’ (join KiwiSaver) at any time – although once you do, you can't opt out – either through your employer or through a KiwiSaver provider.
- As an employee, you can choose to contribute 3%, 4%, 6%, 8% or 10% of your gross (before-tax) wage or salary to your KiwiSaver account. (Please note that any government benefits you may receive are typically means-tested against your gross salary, so your contributions to KiwiSaver may not be taken into account when you are considered for eligibility.)
- After 12 months in KiwiSaver you can take a break from saving (called a ‘savings suspension’) or carry on.
Once you’ve joined, you can make voluntary contributions (lump sums or regular automatic payments) at any time, either directly to your KiwiSaver provider or through Inland Revenue.
Guide to managing my KiwiSaver account
Saving for a first home
When buying your first home you may be able to make a one-off withdrawal of most of your KiwiSaver savings – as long as you’ve been a KiwiSaver member for at least three years. You also may even qualify if you have owned property previously.
In addition to a KiwiSaver savings withdrawal, there’s also the KiwiSaver HomeStart grant. If eligible, the government may also give you up to $5,000 towards buying an older, existing home, or up to $10,000 towards buying a new home or land to build a new home on.
Visit the Housing New Zealand website for more information.
Choosing a KiwiSaver fund
You can choose the KiwiSaver scheme your savings are invested with or let your employer or the government choose one for us. KiwiSaver schemes are run by ‘providers’ like banks and investment companies and typically have a number of funds to choose from.
Each fund has a different mix of things it invests in – such as bank deposits, bonds, shares and property.
KiwiSaver: which fund suits?
To get the results you’re after, select a fund that works for you. The
KiwiSaver fund finder helps compare funds to match your situation.
