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% 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.