Kiwisaver
Poua he Oranga
What is Kiwisaver?
KiwiSaver is a long-term savings scheme in New Zealand that was setup in July 2007 with the aim to improve New Zealanders' retirement savings.
KiwiSaver was setup as a voluntary savings scheme, with regular contributions being made automatically along with an employee's PAYE tax.
In addition to the financial security of making regular retirement savings, there are several incentives to invest in KiwiSaver such as:
KiwiSaver
- Employer Minimum Contribution
- 3.0%
- Employee Contribution Options
- 0%, 3%, 4%, 6%, 8%, 10%
- Government Match Rate
- 25c per $1 (up to $260.72 p.a.)
Kiwisaver Examples:
Kiwisaver contributions for $50,000 income
Kiwisaver contributions for $100,000 income
How are Kiwisaver payments made?
For employees, Kiwisaver contributions will be automatically deducted from their pay according to their chosen contribution rate.
Contributions will be submitted to IRD by employers on behalf of their employees, along with an additional employer contribution for qualifying employees (effectively, most employees between the ages of 18 and 65 who are not on a savings suspension). IRD then pass the full payments on to the member's nominated Kiwisaver provider, along with a small amount of interest if there are any delays.
Self-employed people may make voluntary payments into their Kiwisaver fund by submitting a payment to IRD with tax type "KSS" through internet banking, or by arranging to make a one-off or regular payment directly to their Kiwisaver fund provider.
Rates and examples on this page are accurate as of the time of writing but should not be considered as financial advice. Kiwisaver rules and regulations do change over time. Visit kiwisaver.govt.nz for more information.
Kiwisaver Articles
KiwiSaver is a powerful tool for securing your financial future, but many contributors leave significant money on the table by sticking to the minimum contribution rate. This article explores how increasing your contributions can make a substantial difference to your retirement savings, thanks to compounding growth, employer contributions, and government incentives. We'll also provide a detailed projection of how your retirement fund could grow based on different contribution rates, helping you visualise the benefits of making small changes today for a more comfortable tomorrow.