KiwiSaver Basics

Find out about the $1,000 kick-start grant here.

What is KiwiSaver?
Who can join?
What you get and don‘t get: 2% employer payment, tax credits and  $1,000 kick-start grant.
Withdrawing from KiwiSaver
Changing KiwiSaver providers

WHAT IS KIWISAVER?

  • KiwiSaver is a voluntary savings scheme designed to encourage New Zealanders to save for their retirement.
  • Savings in KiwiSaver accounts are locked in until you are eligible to receive NZ Super (currently 65) or 5 years after you joined KiwiSaver (whichever is the later).
  • You can choose your own KiwiSaver provider, and change your provider at anytime.
  • New employees are automatically enrolled in KiwiSaver by their employer and have up to 8 weeks to opt-out.
  • Other employees and people who are self-employed or not employed can opt-in to KiwiSaver.
  • Once a person has opted-in to KiwiSaver, they cannot opt out.
  • KiwiSavers who are employees must contribute either 2%, 4% or 8% of their gross salary or wages.
  • If you change employment your membership in a KiwiSaver scheme is not affected - your KiwiSaver account follows you wherever you are employed in New Zealand.
  • After contributing for 12 months, employees can apply to the Commissioner of Inland Revenue for a "contributions holiday"

WHO CAN JOIN?

To join KiwiSaver you must be: A New Zealand citizen or entitled to live in New Zealand indefinitely; and Living or normally living in New Zealand; and Under 65 years old.

As long as you meet these criteria, you can join KiwiSaver. Join now.

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WHAT YOU DO AND DON‘T GET: 2% employer payments, tax credits and $1,000 kick-start grant

Everyone who joins KiwiSaver gets:

  • $1,000 government kick-start grant three months after joining. This is a one-off grant, paid into your KiwiSaver account when you first join.

Members aged between 18 and 65 are eligible for:

Members who are employees will contribute 2%, 4% or 8% of their salary, and will receive an employer contribution of 2% of their gross annual salary. Some employers who offer complying superannuation schemes may be exempt from contributing to their employees KiwiSaver accounts.

Exclusions

  • Minors (under 18s) are not eligible for the member tax credit.
  • Employers are not required to make employer contributions to a minor‘s account, but they may elect to.
  • Employees who are not contributing (e.g. are on a contributions holiday) are not automatically entitled to employer contributions (although an employer may choose to keep making contributions.)
  • Some employers who offer complying superannuation schemes may not be required to contribute to their employees KiwiSaver.
  • Members who are eligible to withdraw from KiwiSaver but who have chosen to remain in the Scheme will no longer be eligible for the member tax credit.
  • Members who leave New Zealand to reside overseas (but who are not permanently emigrating) are not eligible for tax credits while they are not resident in New Zealand.

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WITHDRAWING FROM KIWISAVER

Ordinary withdrawals

You can withdraw money from your KiwiSaver account when you become eligible for New Zealand Superannuation (currently age 65) or after you have been a member of the scheme for 5 years, whichever is later. This means that if you join up at age 61, you will have to wait until you are 66 to make withdrawals. If you join up when you are 64, you will have to wait until you are 69.

Early withdrawal

There are some circumstances where you may apply to the trustees of your KiwiSaver scheme to withdraw your savings early.

  • After three years in KiwiSaver to buy your first home (excluding the $1,000 kickstart and the member tax credits).
  • If you experience significant financial hardship (excluding the $1,000 kickstart and the member tax credits).
  • If you suffer serious illness the total amount of your KiwiSaver account.
  • If you emigrate permanently (including the $1,000 kickstart but excluding the member tax credits, which are paid back to the government). You can apply to withdraw your savings 12 months after you leave New Zealand.
  • On your death, the total amount of your KiwiSaver account will be paid to your estate.

In most cases you apply to your KiwiSaver scheme provider if you want to withdraw your savings. If you experience significant financial hardship or serious illness within the first three months of joining KiwiSaver, you‘ll need to apply to the IRD.

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CHANGING KIWISAVER PROVIDERS

You can change KiwiSaver providers whenever you like.

You can choose your own KiwiSaver provider and can change provider at any time.

Changing your account to GMK

Just complete our online application process and we handle the rest.

  • We’ll contact IRD to update your records
  • We’ll contact your old provider and arrange a transfer of your money
  • We’ll set you up with a GMK account so you can track your contributions and your investments

If you would like to change your provider to GMK, here are the instructions.

Changing from GMK to another provider

We don‘t want to see members leaving us, but we understand that it will happen. Just join your new provider and they will contact us to transfer your funds to their scheme. No questions asked.

If you‘d like to talk to us before you decide to make a change of providers, call us during business hours on 0800 427 384.

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For more details on KiwiSaver visit IRD‘s KiwiSaver website: www.kiwisaver.govt.nz.