KiwiSaver at a Glance
Grow your retirement savings faster with KiwiSaver
KiwiSaver is a compelling initiative by the Government that provides a number of incentives to help every New Zealander save for their retirement.
Contributions to your savings from the Government and your employer will help to grow your retirement nest egg faster. The key incentives for individuals to join KiwiSaver are from the contributions gained from the Government and your employer.
| $1,000 kick-start |
When you first join KiwiSaver, the Government will give you a $1,000 kick-start in your first year.
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| Member Tax Credits |
Subject to certain criteria, from age 18, you will receive member tax credits matching the contributions you have made to a maximum of $20 per week or $1,042 per year.
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| Employer Contribution |
From age 18, if you are employed and contributing to KiwiSaver your employer will generally contribute as well. Employer contributions will be 2% of your gross (pre-tax) salary or wages.
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These additional savings incentives from the Government and your employer can make a significant difference to the return on your contribution, even before taking into account the performance of your portfolio.
KiwiSaver helps stretch your investment dollar
In the first year alone you could more than double the return on your investment thanks to the incentives of KiwiSaver.
As an example: A 2% contribution for an employee earning $75,000 pa. The employee only invests $1,500 to achieve a 236% return in the first year, before taking into account the performance of the portfolio.
Your Contribution
If you are employed, 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.
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 Statement for details)
Employer Contribution
From age 18, if you are employed and contributing to KiwiSaver your employer will generally contribute as well.
Employer contributions will be at 2% of your gross (pre-tax) salary or wages.
As an example, if you earned $75,000 per year for 40 years, your employer contributions could add up to $60,000.
Government Contribution
When you first join KiwiSaver, the Government will kick-start your savings with $1,000 in your first year.
Subject to certain criteria, from age 18, you will receive member tax credits matching the contributions you have made to a maximum of $20 per week or $1,042 per year.
Over 40 years this could all add up to $42,680 from the Government alone.
For more detail on KiwiSaver you can visit our page on The Benefits of KiwiSaver and our Frequently Asked Questions (FAQ) page.
If you are still undecided on whether KiwiSaver is right for you, find out why waiting even another year to join KiwiSaver could cost you thousands of dollars. Go to our page showing The Value of KiwiSaver at Retirement.
| Other features of Interest |
| Tax Exempt Employer Contributions |
Compulsory employer contributions, of up to 2% of an employee’s gross salary or wages, are exempt from ESCT (Employer Superannuation Contributions Tax).
This is a key advantage of KiwiSaver over registered superannuation as more money is contributed to your KiwiSaver Scheme from your employer. |
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Withdrawal to Buy Your First Home
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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).
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. This will depend on your household income and the price of the home. The first home deposit subsidy is administered by Housing New Zealand |
| Your KiwiSaver account stays with 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 each year in order to receive matching member tax credits from the Government. |