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KiwiSaver

KiwiSaver

KiwiSaver is a voluntary savings scheme that can help you save for your retirement. In some situations, you may also be able to use part of your KiwiSaver savings to help you buy your first home.

If you’re an employee earning a salary or wage, you can grow your savings by making regular contributions from your wage or salary. If you don’t earn a salary or wage, you can make contributions to your KiwiSaver savings directly.

Your savings are then invested on your behalf by the KiwiSaver provider of your choice. If you don’t select a provider, Inland Revenue will assign you to a default KiwiSaver scheme.

There are lots of KiwiSaver providers to choose from, and plenty of different fund options available. It’s important to consider things like how long you will be contributing for, your appetite for risk, any applicable fees, and what support/service the provider offers.

Talk to one of our advisers to find out more...

The benefits of KiwiSaver

Employer contributions

If you’re employed, your employer will contribute to your KiwiSaver savings on top of your own contributions (unless they are already contributing to another superannuation fund for their employees).

The employer contribution is a minimum of 3% of your before-tax pay – however, your employer must pay tax on their contribution so you may get less than 3% paid towards your KiwiSaver investment.

For more information about employer contributions to KiwiSaver, check out IRD’s website here.

Government contributions

If you’re contributing to your KiwiSaver investment, the Government will also contribute up to $521.43 each year. To receive the entire $521.43, you must have contributed at least $1,042.86 in the period 1 July to 30 June.

Some KiwiSaver members miss out on the full Government contribution by not contributing enough themselves. Keep an eye on how much you’ve contributed to your KiwiSaver investment to maximise this benefit.

For more information about Government contributions to KiwiSaver, check out IRD’s website here.

First home withdrawal

You may be eligible to withdraw funds from your KiwiSaver investment to help buy your first home. You need to have been in KiwiSaver for at least three years before you withdraw funds for your first home, and you must leave at least $1,000 in your account.

For more information about withdrawing funds from your KiwiSaver investment for your first home, check out IRD’s website here.

First Home Grant

If you’ve been making regular KiwiSaver contributions for 3-5 years, you may be eligible for a First Home Grant to help you buy your first home. However, you might still qualify if you’ve owned a home before.

First Home Grants can pay up to $5,000 for an existing home, or up to $10,000 for a new home or land to build on.

These grants are administered by Kainga Ora. For more information, check out their website here.

Your money is held in trust

The law requires your KiwiSaver investment to be held in trust, and not by the  KiwiSaver provider directly. This means the assets are held in trusts that are entirely separate from the provider.

Close to retirement age?

If you joined KiwiSaver before 1 July 2019 and were aged between 60-64, you would have been locked into KiwiSaver for 5 years – meaning you could not withdraw your funds when you were 65.

As of 1 April 2020, you can now opt out any time after you’re 65 and withdraw your savings; or keep your funds in KiwiSaver for the full 5-year term and withdraw them after that.

Keep in mind that if you choose to opt out of the 5-year lock in period, you stop getting the Government contribution, and your employee stops contributing to your KiwiSaver investment (if applicable).

For more information about withdrawing your KiwiSaver investment when you retire, check out IRD’s website here.

DISCLAIMER: This information is intended for general purposes only and does not constitute KiwiSaver advice. While every effort has been made to ensure this information is complete and accurate, we recommend you visit IRD’s website here or contact us directly for full information about KiwiSaver and how it works. If you are seeking more information about KiwiSaver, please contact one of our advisers directly. 

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Disclaimer: Please note the content provided on this page is intended as an overview and general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect new developments in the industry or address your situation. Before making any decisions based on the information provided on this page, please use your discretion, and speak to one of our advisers.