SuperLife

KiwiSaver is a government savings initiative to help you save for your retirement. To encourage you to save the government provides an annual subsidy, known as a government contribution (GC) of up to $521.43 a year. To qualify for the government contribution you must be 18 or older, and under your KiwiSaver retirement age.

If you are an employee, you will also get a contribution from your employer.

In most cases you will not be able to access your KiwiSaver savings (including your own contributions) until your retirement. However, it may be possible to withdraw money if you are buying your first home, or in cases of significant financial hardship, serious illness and permanent emigration. Your funds will be paid to your estate if you die.

All contributions and benefits payable are subject to the KiwiSaver Act 2006.

No. Your KiwiSaver account is in your name and it's your money. You can read more about this on the Sorted website by clicking here.

• KiwiSaver is a savings initiative to help you save for retirement - You choose how much to contribute and your employer also makes regular contributions. If you are an employee it has to be 3%, 4%, 6%, 8% or 10% of your pay through the PAYE system. Your employer also pays 3% if you are 18 or older and under your KiwiSaver retirement age (currently 65). When you reach your KiwiSaver retirement age you will then be eligible to withdraw your balance from your KiwiSaver account. Through SuperLife, these funds can be paid to you in a lump sum or regular withdrawals – whichever you prefer.

• The government helps you to save - At the end of June each year the government will top up your KiwiSaver account by $1 for every $2 you save, up to the value of $521.43 (provided you are 18 or older, your primary residence is New Zealand and you are not yet eligible for a retirement benefit). The maximum amount you receive will be pro-rated if you are eligible for only part of the year.

• You can access your KiwiSaver savings early to purchase your first home - If you've been a member of KiwiSaver for 3 years you may be able to withdraw some of your KiwiSaver savings to put towards purchasing your first home

You can join KiwiSaver if you are self-employed or not employed.

You can contribute any amount you choose either through lump sum payments or by direct debit and enjoy all of the benefits of KiwiSaver - except, you won’t receive employer contributions. These benefits include the government contribution and the ability to withdraw your savings for the purchase of your first home.

What happens if you become an employee (start earning income that is subject to PAYE)?

If you become an employee, then a different set of rules apply. The main change is that you may be required to contribute a minimum of 3% of your taxable earnings to KiwiSaver. Your employer will need to pay the same amount on your behalf, if you are aged between 18 and 65. However if you have been in KiwiSaver for 12 months you can choose not to contribute (called a “savings suspension”). In this case, your employer can also choose not to contribute. You can still choose to save $87 per month to get the maximum government contribution.