KiwiSaver is about securing a better future.  Whether it is to save a deposit for a house or for your ultimate retirement, you can generally save more in KiwiSaver than in alternative investment products.  If you are not an employee (e.g. self-employed, a beneficiary, a stay-home parent, etc) saving $1,043 a year ($87 a month) maximises the government’s benefits you can save less.  If you are not an employee, you do not need to save at all.

Example: save $1,043 a year

After 1 year, the position is:

Your savings          $1,043 i.e. $86.92 a month
Government's MTC tax credit     +  $   521 $1 for $2 up to $521 for a full year
Investment earnings     +  $     25 (Say 5% after-tax)
Fees     -  $      30  


After 5 years', the postition is:

non employee june2015.PNG

* If you are not an employee, you can choose how much you save. If you become an employee, you must save 3% of your total before tax salary until you have been in KiwiSaver for at least 1 year. After 1 year you can go on a contribution holiday.