KiwiSaver
General
What is KiwiSaver?
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.
Does the government hold my money?
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.
Why should I join KiwiSaver?
- 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
