KiwiSaver is a voluntary savings initiative designed to help New Zealanders save for their retirement.

KiwiSaver is a locked in Scheme designed to help you save, as such your money is locked in until you are 65 unless you meet certain criteria for early withdrawals.

Generally, your employer will also contribute from your before-tax pay from when you turn 18 until you reach your KiwiSaver Retirement Age. Your employer may not have to make KiwiSaver contributions if they already make contributions for you to another retirement scheme (certain conditions apply) or if you are taking a savings suspension or otherwise not making employee contributions.

In addition to your employee contributions, there are some additional attractive incentives to encourage you to join KiwiSaver.

Your contributions

• If you are in paid employment, you can choose to save 3%, 4%, 6%, 8%, or 10% of your pay (before tax). Contributions are taken from your pay directly.
• If you are self-employed, you can still contribute to KiwiSaver.

 Government contributions

• When you are over 18 and regularly contributing to KiwiSaver, the government also contributes to your savings – up to $521.43 each year.
• In order to receive the full government contribution of $521.43, you will need to have contributed at least $1,042.86 in the year into your KiwiSaver account. 
• If you are self-employed, we will send you a reminder each year to make sure you have contributed enough to get the maximum amount of government contributions. 

If you have been in KiwiSaver account for over a year and have had a change in financial circumstances, you can suspend saving into KiwiSaver account for between 3 months to a year. If you are employed, you just need to tell your employer, and complete a savings suspension form and send it to the IRD.

Note that you will not get your employer’s contributions unless there is a prior agreement stating otherwise. You will also need to make voluntary payments to benefit from the government contribution to your KiwiSaver account.

If you have been in KiwiSaver account for less than a year, you can apply to the IRD to take a break from saving. However, you need to provide evidence that you are experiencing, or are likely to experience financial hardship. You also need to show that your financial circumstances have changed due to reasons beyond your control. The default savings suspension period is three months, but the IRD may allow up to a year, depending on your circumstances.

You can set your contribution rate at either 3%, 4%, 6%, 8% or 10% of your salary or wages. Simply tell your employer in writing the rate you would like to increase it to and complete the IRD KS2 form.

You can also contribute above what is being deducted from your salary or wages by setting up a direct debit, and saving directly into your KiwiSaver account, or by making a lump sum contribution.

First home withdrawal 

If you’ve been a member of KiwiSaver for three years you may be able to withdraw some of your KiwiSaver savings to put towards purchasing your first home.

You may withdraw your contributions, your employer’s contributions, any government contributions, and all of the investment returns in your KiwiSaver account, provided you leave a minimum balance of $1,000. You may access your KiwiSaver funds under First Home only once.

If you have owned a house before, you may still qualify if the Kainga Ora – Homes and Communities considers that your financial situation, in terms of your income, assets and liabilities, is the same as what would be expected for a person who has never owned a home. In this case, you need to get a certificate from Kainga Ora – Homes and Communities verifying this.

KiwiSaver HomeStart grant

If you are eligible for a first home withdrawal you may be eligible for the extra First Home Grant. The First Home Grant is separate from the first home withdrawal payment. It is managed by Kainga Ora – Homes and Communities and not the KiwiSaver provider. To view a comprehensive eligibility checklist, visit the Kainga Ora – Homes and Community website by clicking the link here. 

In general, the funds in your KiwiSaver account are locked in until you reach the age of 65, which is the KiwiSaver Retirement Age. However, there are certain situations where you may be eligible to withdraw your KiwiSaver money earlier, such as:

• First home withdrawal: You can withdraw some or all of your KiwiSaver savings to put towards buying your first home.
• Significant financial hardship: If you’re experiencing significant financial hardship, you may be able to withdraw some of your KiwiSaver savings.
• Serious illness: If you have a serious illness or injury, you may be able to withdraw some of your KiwiSaver savings.
• Permanent emigration: If you’re permanently emigrating from New Zealand, you may be able to withdraw your KiwiSaver savings.

It’s important to note that there may be specific criteria and conditions that need to be met for each of these situations, and withdrawing your KiwiSaver savings early may impact your retirement savings. It’s always best to speak to us before making any decisions about withdrawing your KiwiSaver funds.