Employees

If you are an employee the government sets some rules.  The minimum savings level is 2% of your total, before tax, taxable pay and this is collected through the PAYE tax system.  You can choose to increase the 2% to 4% (or 8%) and to reduce it back to 2% whenever you choose.  As an employee you have to save the minimum 2% for at least 1 year. From 1 April 2013 the 2% minimum becomes 3%.

After 1 year, you can stop at any time (i.e. go on a contributions holiday). Employees can also make extra savings direct to a provider i.e. not through the PAYE system.  There are no restrictions on this and it is up to the employee and the provider to decide.  SuperLife lets each employee decide what they wish to do and when they wish to do it.

Where an employee saves at least 2% through the PAYE system, their employer must also pay a minimum of 2% to subsidise the employee's savings if the employee is over 18 and under their retirement age.  The employer's 2% subsidy is paid tax-free until 1 April 2012.  From that date it becomes taxable.  Also, from 1 April 2013 it becomes 3%.

Non-employees

If you are not an employee there are no rules about how much you must save other than what your KiwiSaver provider sets - SuperLife sets no rules.  This means that under SuperLife you can choose to save as much or as little as you like, including nothing.

If you are 18 or older, the ideal savings rate is $1,042.86 a year (i.e. $87 a month) until you reach your KiwiSaver Retirement Age. By saving this amount you will be able to maximise the government paid MTC (member tax credit).