KiwiSaver is an investment in your future. It can be a great tool to help you save for your first home or retirement.
Contributing regularly to your KiwiSaver account through your salary or wages makes saving for your future easy. You may also benefit from your employer and the government contributing to your savings.
If you’re contributing to your KiwiSaver account through your work, your employer must also contribute. As an employee, your contribution is automatically deducted from your pay and added to your KiwiSaver account. The default contribution is 3.5% of your pre-tax pay, however you can choose to increase this to 4%, 6%, 8% or 10%.
A key benefit of KiwiSaver is that your employer is required to match your 3.5% contribution, boosting your savings even more.
Note your employer does not have to contribute if you are under 16, have reached retirement age, or they already pay into another complying scheme for you.
Each year, eligible KiwiSaver members can receive a Government Contribution to their KiwiSaver account up to a maximum of $260.72. The government will contribute 25 cents for every dollar, on the first $1,042.86 that you contribute to your account each year to 30 June. Even if you don’t put in the full $1,042.86, the government will still contribute 25 cents for every dollar you put in.
To be eligible for the Government Contribution, you must be:
If you turned 16 or 65 during the year, or joined KiwiSaver part way through the year, your Government Contribution will be pro-rated based on the number of days you were eligible in the year.
