FAQs

KiwiSaver funds are invested in a variety of assets depending on which KiwiSaver provider and fund you hold your balance with. No two funds invest in exactly the same underlying assets with the same weightings, and there are now well over 300 different KiwiSaver funds to choose from. Typical categories of assets in which KiwiSaver funds invest in include shares, bonds, cash and cash equivalents, property and much more. There are funds that also choose the types of assets they invest in based on values. For instance, some funds will only invest in companies that are sustainable, and regarded for their social and corporate governance.

The eligibility for KiwiSaver is…

1. You either live or normally reside in New Zealand; and
2. You must either be a New Zealand citizen, or someone who is entitled to live in New Zealand indefinitely (i.e. a permanent resident)

It’s important to note that you can join KiwiSaver at any age, as long as you meet the above criteria. If you are over 18 years old, you can simply join in the manner outlined in this FAQ. If you are under 18 years old and want to join, you must apply directly through an adviser or with a KiwiSaver provider as you will not automatically be enrolled with your employer. If you are under 18 years old, you are required to have at least one parent or legal guardian sign your application. Effective from 1 July 2025, only one parent or legal guardian’s signature will be required for the enrolment of under-16s into KiwiSaver, a shift from the previous requirement of obtaining signatures from both parents or two legal guardians.

KiwiSaver works by locking your contributions, and any other contributions made to your KiwiSaver account, into a fund of your choice for use on a first home deposit or retirement.

Further details on how KiwiSaver works are as follows:

• You can either choose to enrol into a KiwiSaver fund of your choice, or be default enrolled into a fund upon starting employment
• You can choose to contribute between 3.5% and 10% of your before tax salary
• Your employer must match the contribution that you make directly from your pay to at least a minimum of 3.5%
• You may be eligible to receive the Government contribution of $260.72 each year if you contribute at least $1042.86 each year
• You can withdraw your KiwiSaver investment for your First Home KiwiSaver Withdrawal, or retirement. There are other instances which are less likely as detailed in the FAQ's.
• Your KiwiSaver money is invested in a fund, which is subject to volatility and the potential for returns

There are several different ways to apply for KiwiSaver which are listed below…

1. You can complete our KiwiSaver Fact Find which will recommend a KiwiSaver provider and fund that suits your personal situation and goals. To apply, you then simply need to complete the application process by providing personal identification documents.
2. You can navigate your way to the KiwiSaver provider of your choice and apply directly on their website. The application process will require a number of personal details, identification documents and a selection of fund.
3. You can be default enrolled by your employer. If you are over 18 years old and are starting a job with a new employer, you will be enrolled as per one of the options below:

   • If your employer does not have a KiwiSaver preferred provider agreement, you will then be automatically enrolled into one of the six default KiwiSaver providers, and invested in their default (Balanced) fund; or
   • If your employer does have a KiwiSaver preferred provider agreement in place, you will be automatically enrolled in the default fund of your employers choice. Your employer will communicate details about this KiwiSaver fund to you upon employment and provide you with relevant product disclosure statements.

To find out who your KiwiSaver provider is, navigate your way to the IRD website. You will then need to login to your myIR account using your username and password or your RealMe login. You should be able to see the name of your KiwiSaver provider on the home screen. If you click on ‘Scheme provider details’ you should see a link to the website of your KiwiSaver provider and their phone number.

You can access your KiwiSaver account by navigating your way to your KiwiSaver providers website, and then logging in to your personal KiwiSaver portal. Do note that this will only allow you to check your account and make changes to your fund type, prescribed investor tax rate or update your personal details. If you want to withdraw your funds, you can only do so for specific circumstances as defined in this FAQ. If you are unaware of your current KiwiSaver provider, you can check by logging in to your MyIR account on the IRD website and on the ‘Summary’ tab adjacent to ‘KiwiSaver member’ will be your KiwiSaver Scheme details and other links relating to your KiwiSaver fund.

KiwiSaver is not compulsory, however it is difficult to not participate in the scheme.

• If you do not have a KiwiSaver account, you will be asked to join KiwiSaver everytime you begin a job with another employer. You must opt out each time if you do not want to participate in KiwiSaver.
• If you already have a KiwiSaver account, you cannot choose to opt out indefinitely. If you are self-employed, you do not need to contribute, however you will still have a KiwiSaver account. If you are employed, you must contribute a minimum of 3.5% of your gross pay towards your KiwiSaver account. You can apply for a savings suspension however the savings suspension can only be for a 3 – 12 month time period at any one time.

Although KiwiSaver is not compulsory, it makes financial sense to participate in the scheme given the annual Government contributions and employer matched contributions.

Yes, you can. With approximately 30 unique KiwiSaver providers, there’s a vast selection to choose from. Some providers have a focus on investment management, while others may be New Zealand owned and operated. Each have unique benefits, and your investment goals/values should dictate your choice in providers.

Transferring KiwiSaver providers takes between 5 and 10 business days. However, applying to switch KiwiSaver providers only takes 5 minutes. Once you have applied to change providers, your new KiwiSaver provider communicates this to the IRD and your current KiwiSaver provider. Your funds will then transfer from your current KiwiSaver provider to the IRD, and then onto your new KiwiSaver provider to be invested in the fund of your choice.

You can change your KiwiSaver contribution rate by completing a ‘KiwiSaver deduction (KS2) form’ and giving it to your employer. If you are working for a large company, provide your HR/Payroll department with the completed KS2 form. If you are working for a smaller company, the right person may be your boss. Once your employer receives the completed KS2 form, the change in contribution rate will be initiated. Do note that you can only change your contribution rate once every three months, and you can choose to contribute between 3.5% and 10% of your gross pay.

The minimum contribution is 3.5% of your gross pay to KiwiSaver if you are a member. If you do not want to contribute towards your KiwiSaver investment, you can apply for a savings suspension, however this can only be for a maximum of 12 months.

If you are employed then you are required to contribute at least 3.5% of your gross pay towards KiwiSaver, and your employer is also required to match your contribution to at least 3.5%. You can apply for a savings suspension at any time if you have been in KiwiSaver for at least one year, however the savings suspension can only be for between 3 and 12 months at any one time. You do not need to give a reason, and you can have as many savings suspensions as you want. If you are not employed, or self-employed and aren’t subject to PAYE, then there is no requirement for you to contribute to KiwiSaver. It’s important to note that even if you aren’t employed or don’t earn PAYE income, you are still able to receive the full annual Government contribution if you meet eligibility and contribute at least $1,042.86 in the KiwiSaver year.

Yes, in most instances your employer does have to match your KiwiSaver contributions up to a minimum of 3.5%. From 1st April 2028, the default KiwiSaver contribution rate will rise to 4% (from 3.5%) for you and your employer.

There are a couple of exceptions regarding employer contributions:

• If you’re aged 16 or 17 you now qualify for employer KiwiSaver contributions from 1 April 2026, so long as you meet other eligibility requirements. If you contribute to KiwiSaver from your wages, your employer will need to start making contributions. Before 1 April 2026, your employer only needed to contribute for employees aged 18 to 65.
• If you are not contributing towards your KiwiSaver investment then your employer isn’t required to.
• If your employer is already paying at least 3.5% into another eligible retirement scheme, they are not required to also contribute to your KiwiSaver
• If you have signed a total remuneration package, you will have agreed in your contract for the employer deductions to come out of your paycheck

The KiwiSaver Tax Credit is the annual contribution of up to $260.72 which the Government provides to each KiwiSaver member who is eligible to receive it. The eligibility criteria is as follows:

• From 1st July 2025, you now receive $0.25 for every $1.00 that you personally contribute, up to a maximum of receiving $260.72 (i.e. you need to contribute at least $1,042.86 to receive the full Government contribution)
• If you’re aged 16 or 17, you now qualify for government contributions, so long as you meet other eligibility requirements. Therefore, you must be 16 or over but not yet 65 years old to qualify.
• If you earn more than $180,000 of taxable income in a year, you no longer qualify for the government contribution.
• Personal contributions include your employee contributions and any voluntary contributions you make. Any employer contributions or Government contributions do not count
• You must make your contributions within the KiwiSaver year, which is from 1st July to 30th June
• You must be a KiwiSaver member prior to the start of the KiwiSaver year to receive the maximum government contribution. If you became a KiwiSaver member during the KiwiSaver year, you are only entitled to a prorated contribution (i.e. if you joined on 1 October, or 3 months through the year, you would be eligible to receive approximately 75% of the Government contribution)

Yes, you can join KiwiSaver after 65 years old. Do note that you are not eligible to receive the annual Government contribution once you are 65 years old, and your employer is not legally required to match your KiwiSaver contributions once you turn 65 (although some continue anyway). If you are over 65 years old and want to join KiwiSaver, you can apply in the same manner as anyone else over 18 years old.

No, you can only use your KiwiSaver investment once for a KiwiSaver First Home Withdrawal. To reiterate, if you withdraw your KiwiSaver money once for your first-home deposit, then you cannot, under any circumstance, withdraw it again to buy another house. You can however use your KiwiSaver balance for your first home withdrawal, then withdraw it again if you permanently move overseas or reach the retirement age of 65. It is important to note that when you reach 65 years of age, you do not need to withdraw your KiwiSaver investment all at once. At this point your KiwiSaver investment becomes ‘liquid’, and you can use it more like a bank account, withdrawing and depositing funds at your own discretion.

Yes, you can withdraw your KiwiSaver account if you move overseas to any country, except Australia.

Australia: If you permanently move to Australia, you are only able to transfer your KiwiSaver balance to an Australian Superannuation Scheme. To initiate this process, either contact your adviser or KiwiSaver provider directly. Do note that you don’t need to transfer your KiwiSaver account to Australia if you are permanently moving, and if you do so you forfeit your ability to withdraw your KiwiSaver balance for a first home deposit in New Zealand.

Any other country: Once you have been living in any other country for at least one year, you can withdraw the majority of your KiwiSaver balance. You can withdraw the following…

• All personal contributions
• All employer contributions
• All returns
• The $1,000 kickstart (for those that enrolled in KiwiSaver prior to 21st May 2021)
• Any fee subsidies
• The only portion of your KiwiSaver balance which you cannot withdraw is your annual Government contributions.
• Also note that if you are moving to a country that has an approved superannuation scheme, you can apply to have your KiwiSaver funds transferred directly into the scheme.

You can stop KiwiSaver payments by applying for a savings suspension. To apply for a savings suspension, you must log in to your myIR account. You can then select ‘Apply for a savings suspension’. If you have been a KiwiSaver member for at least one year, you do not need to provide any reasoning as to why you are applying for the savings suspension. If you have been a KiwiSaver member for less than one year, you must provide evidence of financial hardship. Also note that the savings suspension can only be for between 3 and 12 months long.

KiwiSaver is not Government guaranteed. KiwiSaver is a retirement funding scheme set up and incentivised by the New Zealand Government to get Kiwi’s ahead financially, however, they do not guarantee your KiwiSaver balance. Your KiwiSaver balance is invested with your KiwiSaver provider in a fund of your choice, and is subject to the volatility of that fund (i.e. it goes up or down in value depending on the performance of the underlying assets in your fund). It is important to note that your KiwiSaver provider also does not hold your KiwiSaver balance, rather your KiwiSaver balance is held with an independent licensed supervisor or custodian. This means that if your KiwiSaver provider went bankrupt, your KiwiSaver balance would be safe.

You cannot use your KiwiSaver account to start a business. There are only a few instances in which you can withdraw your KiwiSaver savings including for well known reasons such as a First Home KiwiSaver Withdrawal and a Retirement Withdrawal (age 65), as well as lesser known reasons such as experiencing Significant Financial Hardship, permanently emigrating to a country other than Australia, being diagnosed with a serious or terminal illness, and having a Life-Shortening Congenital Condition.

You can not use your KiwiSaver account to buy a car. You can only withdraw your KiwiSaver account for your first home deposit, when you reach age 65, if you suffer significant financial hardship, if you permanently move to another country other than Australia, if you are terminally ill or if your KiwiSaver balance becomes part of your estate.

Yes and no. The capital gains made on your KiwiSaver investment, or the returns, are tax free. You do however pay tax on any dividends or interest you receive on the assets your KiwiSaver fund invests in. Any dividends or interest you receive are taxed at your prescribed investor rate (PIR), which is based on the lesser of your previous full two years of income. Note that your KiwiSaver provider manages your tax obligations on your behalf, therefore there is no need to worry about it when you’re filing your year end tax return.

Your KiwiSaver contributions are either taxed or not depending on the type of contribution.

• Your personal employee contributions are not subject to tax, but have already been taxed at source of income.
• Any voluntary contributions that you make are not subject to tax.
• The annual Government contribution of maximum $260.72 is not subject to tax.
• Your employer’s contributions are subject to tax. This tax is named employer superannuation contributions tax (ESCT), and the rate is dependent on your annual gross income. See below for rates:

  • $0 $18,720 = 10.5%
  • $18,721 – $64,200 = 17.5%
  • $64,201- $93,720 = 30%
  • $93,721 – $216,000 = 33%
  • $216,001+ = 39%

KiwiSaver returns are the investment gains you get on your KiwiSaver money after fees and taxes. KiwiSaver returns vary depending on the provider and fund in which your KiwiSaver savings are invested with. KiwiSaver returns can be found and compared by using the data collated by Morningstar. It’s important to ensure that you do your research before selecting a KiwiSaver fund to invest in as even a small change in KiwiSaver returns can make a big difference to your retirement balance over the long run.

Yes, your KiwiSaver money is taxed, but only your investment gains are taxed. All of your own contributions, and your employer’s contributions (after ESCT), are deposited into KiwiSaver as tax paid capital.

Your returns/investment gains are usually taxed as per the PIE tax regime, with interest or dividends your fund generates being taxed at your prescribed investor tax rate (PIR). You won’t need to worry about paying your KiwiSaver tax, as your KiwiSaver provider will pay this automatically for you.

KiwiSaver started on Monday, 2 July 2007. KiwiSaver was implemented by the Labour Government to assist New Zealanders with saving for a first home deposit as well as retirement. In 1975 New Zealand did implement the New Zealand Superannuation scheme, which was very similar to the KiwiSaver that we see today, however it only lasted 11 months until it was disbanded by Robert Muldoon.