Make the most of KiwiSaver and grow your balance

You can stop contributing to KiwiSaver for between three months to one year. This is called a 'savings suspension’. You can stop a savings suspension at any time and restart KiwiSaver contributions.

Your employer doesn’t have to make their contributions if you take a savings suspension. But, if they choose, they can continue to make employer contributions.

Find more information, including how to apply for a savings suspension, on the KiwiSaver website.

If you suffer financial hardship before you have been in KiwiSaver for 12 months and have evidence for it, you may be eligible for an early savings suspension. This is usually for three months, although Inland Revenue may agree to a longer period.

If you suffer significant financial hardship, you may be able to withdraw some of your KiwiSaver savings. Find out more about early withdrawal on the KiwiSaver website.

A savings suspension gives you a break from making regular payments through your salary. But you can still make voluntary contributions or lump sum payments at any time, either directly to Inland Revenue, or directly to your provider.

And if your contributions total $1,043 for the year by mid June, you will still benefit from the maximum annual ‘member tax credit’.

Find out more about growing your KiwiSaver by making voluntary contributions on the IR website.

If you’re self-employed or not working you aren’t required to contribute a fixed percentage of our income. So if you need to take a break from contributing it could be as easy as temporarily suspending your direct debit or automatic payment or withholding any lump sum payments. 

Employees currently contributing at a higher rate (eg, 4%) can reduce contributions to the minimum 3% of gross pay. Likewise you can increase your contribution rate if you wish to save more. 

Changing you contribution rate is easy. All you need to do is notify your employer in writing of the change, or complete a new KS2 form (which you can get from your employer).

There’s more about changing contribution rate on the IR website.

If you go on parental leave or are out of work, for example, your KiwiSaver money stays invested, so it can potentially keep growing behind the scenes. While you won’t be contributing from your pay, you can choose to contribute directly through your provider. That way you can still receive the government contribution of $521 each year. Even if you are not working, KiwiSaver can still work for you. For those on parental leave, some employers will even continue their contributions. But for everyone under age 65, the government's match of 50 cents for every dollar put in still applies, so it's important to put in at least $1043 to get the full amount each year. Here's more on how KiwiSaver works. 

There’s no one-size-fits-all answer. Let's work backwards from your goals: how much would you like to have for your first home or retirement, and how soon? Those questions can drive your choices. Take a moment to put your information into our KiwiSaver savings calculator to get an idea if you're on track to achieve those goals. Underwhelmed a bit? Try adjusting your contribution rate to see how much difference it makes. Finding a contribution rate that gets you to your goals and works with your budget is the key. Here’s our KiwiSaver calculator. 

Yes, along with growing a nest egg for retirement, buying a first home is one of the goals that KiwiSaver is made for. Part of the purpose of KiwiSaver is to help us grow assets, and one way is by using it for a first-home withdrawal when you've built up some money in it. The second way is through a KiwiSaver First Home Grant, which could give you as much as $10,000 more for a home. Find out more here. 

You want this to be a last resort, since you do irreversible damage. But if you are in significant hardship and need to withdraw to keep food on the table, you apply directly to your KiwiSaver provider. In tough situations like a Covid lockdown, it's good to know that there is the possibility of a hardship withdrawal from KiwiSaver. But it can't be used for repaying debt or fines, for instance, and you want to make sure you're tapping all your other options first. Here's more when you're thinking of applying. 

KiwiSaver is designed for two things: buying a first home and growing a nest egg for retirement. When times get tough, you can withdraw to keep food on the table and pay your living expenses. But typically it's not for repaying debt like credit cards, fines or infringement notices, debt collection agency bills, hire purchase debt for non-essential living expenses, holidays, or even travel to visit a sick relative. Here's how a hardship withdrawal works.