KiwiSaver Features


KiwiSaver is a voluntary long-term NZ wide work based savings scheme.  It provides all New Zealand citizens who are under the age of eligibility for NZ superannuation (currently age 65) with the opportunity to save for their retirement.  The Inland Revenue (IR) is the administrator and clearing house for all enrolled employees (other than the self employed).  The minimum regular contribution for members is 3% of a wage or salary and this is matched by a compulsory 3% employer contribution if the employee has attained age 18.  The employer contribution is no longer exempt from Employer Superannuation Contribution Tax (ESCT).

The self-employed, and people wanting to join before they are 18 years of age or whilst not employed, can open a KiwiSaver account with a scheme provider of their choice.

The National Party led Government signaled in its May 2011 Budget that if a National Party led Government remains in power after the 2011 election, then from 1 April 2012 the ESCT exemption would be removed and deducted at the applicable progressive ESCT rate, and from 2013 the minimum regular contribution for members would increase to 3% of gross wages or salary and the compulsory matching employer contribution would also increase to 3% (if the employee has attained age 18). In its May 2015 Budget the Government withdrew the $1,000 kick-start incentive grant.

Automatic enrollment  - for employees who are 18 years+

Contributions can be regular and / or lump sums

Locked in savings until 65 years

Crown contributions provide an incentive to save

Choice of KiwiSaver scheme providers

Default funds for those who do not make an investment choice

Early withdrawals - conditions apply

First home deposit subsidy - conditions apply

Compulsory  Effective 1 April 2012 the current Employer Superannuation Contributions Tax (ESCT) exemption was removed. Employers must deduct ESCT at the applicable ESCT rate.

Inland Revenue - clears all KiwiSaver employer payments