KiwiSaver
New Zealand's voluntary retirement savings scheme. You contribute a percentage of your salary (3.5%, 4%, 6%, 8% or 10%), your employer contributes at least 3.5%, and the government adds up to $260.72 a year. Money is locked until age 65 (with exceptions for first home and hardship).
KiwiSaver is New Zealand's workplace savings scheme, designed to help Kiwis save for retirement. It's voluntary but most employed New Zealanders are enrolled.
Here's how it works: you choose a contribution rate (3.5%, 4%, 6%, 8% or 10% of your gross salary — 3% is no longer one of the options and survives only as a temporary reduction you apply for). Your employer must contribute at least 3.5%. The government adds 25c for every $1 you contribute, up to $260.72 a year, which takes about $1,043 of your own contributions over the year to collect in full.
Your money is invested by a KiwiSaver provider (like ANZ, ASB, Fisher Funds, Simplicity, or many others) in a fund type you choose, from conservative to aggressive growth. The fund you're in makes a big difference to your returns over time.
You generally can't withdraw until age 65, but there are two main exceptions: buying your first home (after 3+ years of contributions) and significant financial hardship.
Why this matters
KiwiSaver is the single most important financial tool for most New Zealanders. Between your contributions, your employer's, and the government's, your money effectively gets an immediate return before any investment growth. If you are contributing less than 3.5%, you are leaving your employer's money on the table.
More KiwiSaver terms
KiwiSaver First Home Withdrawal
After 3+ years of contributing, you can withdraw most of your KiwiSaver balance to buy your first home. You must leave $1,000 in the account.
First Home Grant
Closed. The First Home Grant stopped taking new applications on 22 May 2024 and is not returning. It paid $3,000-$10,000 per person to first home buyers who met KiwiSaver contribution and income tests. The KiwiSaver first-home withdrawal and the First Home Loan are the schemes that still exist.
PIE Tax
Portfolio Investment Entity tax. The tax rate on your KiwiSaver and managed fund returns. Your rate depends on your income: 10.5% (under $14K), 17.5% ($14-48K), or 28% (over $48K). Set it correctly to avoid overpaying.
Conservative Fund
A KiwiSaver or managed fund that invests mostly in bonds and cash. Lower risk, lower returns. Suitable if you're close to retirement or plan to withdraw soon.
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