KiwiSaver at a Glance
KiwiSaver is a Government initiative that provides a number of incentives to help New Zealanders save for their retirement. The key incentives for individuals to join KiwiSaver include the contributions made by the Government and your employer.
| Product Feature |
Benefit to You |
| $1,000 kick-start |
When you first join KiwiSaver, the Government will give you a $1,000 kick-start in your first year. |
| Member tax credits |
Subject to certain criteria, from age 18, you may receive member tax credits of up to 50 cents per dollar of qualifying member contributions up to $10 per week (up to $521.43 per annum). |
| Employer contribution |
From age 18, if you are employed and contributing to KiwiSaver your employer will generally contribute as well. Employer contributions will generally be 2% of your gross (pre-tax) salary or wages (with this amount being subject to employer superannuation contribution tax at a rate up to 33%). The Government has announced a proposal that the compulsory minimum employer contribution rate will rise from 2% to 3% of the employee’s gross salary or wages with effect from 1 April 2013. Find out more |
| Tax exempt employer contributions |
Compulsory employer contributions, of up to 2% of an employee’s gross salary or wages, are exempt from Employer Superannuation Contributions Tax (ESCT) until 31 March 2012, when these employer contributions will be subject to ESCT at the appropriate rate. Find out more
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| Withdrawal to buy your first home |
After you have been contributing to KiwiSaver for three years you may be able to withdraw part (or all) of your contributions, and your employer contributions to buy your first home (not an investment property). However, your Government $1,000 kick-start and member tax credits cannot be withdrawn to buy your first home.
The Government may give you another $1,000 for every year you contribute to KiwiSaver (minimum 3 years or $3,000, maximum 5 years or $5,000) to go towards a deposit for your first home. Entitlement to this subsidy will depend on your household income and the price of the home. The first home deposit subsidy is administered by Housing New Zealand.
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| Your KiwiSaver account stays with you |
Your KiwiSaver account is personal to you. If you change jobs or leave the workforce, your KiwiSaver account goes with you. |
| Contributions holiday |
After being a KiwiSaver member for 12 months, you can choose to take a break – called a contributions holiday. This can last between three months and five years. You can still contribute $1,042.86 each year in order to receive member tax credits of $521.43 from the Government. |
| Your contribution |
If you are employed and not on a contribution holiday, you will need to contribute 2%, 4% or 8% of your gross (pre-tax) salary or wages that you earn at that job. This is deducted from your net (after tax) pay.
The Government has announced a proposal in the 2011 Budget that the minimum employee contribution rate will rise from 2% to 3% with effect from 1 April 2013. This would also be the default contribution rate. Find out more
If you are self employed or a non worker, you can decide how much you contribute into KiwiSaver (certain conditions may apply, please see our Investment Statements below for details).
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For more information read the kiwiSTART® Select or kiwiSTART® Defined Investment Statements.
Frequently Asked Questions
If you have further questions, some may be answered from those that our clients have asked before when joining KiwiSaver. Visit our Frequently Asked Questions (FAQ) page.