However, apart from certain exceptions if you are aged between 18 and 65 and start a new job your new employer will automatically enrol you in a KiwiSaver scheme. You then have up to eight weeks to decide if you want to stay in the scheme or 'opt out'.
If you are already employed or self-employed, are under the New Zealand Superannuation qualification age (currently 65) and are entitled to permanently reside in New Zealand you can choose to 'opt in' to KiwiSaver, or not. It's up to you.
If you don’t choose your own KiwiSaver scheme and your employer has a preferred scheme, you will be automatically allocated to that scheme. If your employer doesn't have a preferred scheme, the IRD will allocate you to one of six default schemes.
No. If you opt in to KiwiSaver you can join any registered KiwiSaver scheme. If you don't choose your own and your employer doesn't offer a preferred scheme, the IRD will automatically allocate you to one of six default schemes.
In most cases you won't have access to your savings until you reach the age of eligibility for New Zealand Superannuation (currently 65) or until you have been a member of a KiwiSaver scheme for five years, whichever is the later.
In certain circumstances (such as serious illness or significant financial hardship) you may be able to withdraw your savings before you retire. See the question "What if my circumstances change?" below.
After three years have passed since Inland Revenue received the first KiwiSaver contribution in respect of you or you have been a KiwiSaver member for three years or more you may also be able to withdraw some of your savings to use as a deposit on your first home. See the investment statement for more details on accessing your benefit.
In certain circumstances you may be able to withdraw your KiwiSaver savings before you reach the age of eligibility for New Zealand Superannuation (currently 65). For example:
if you suffer, or are likely to suffer, significant financial hardship
if you suffer a serious illness
if you emigrate permanently
if you die.
See the investment statement for more details on accessing your benefit.
Your KiwiSaver scheme will automatically follow you from one job to the next. That means you only need one KiwiSaver account over your entire working life.
Yes. After 12 months in a KiwiSaver scheme, you can apply to take a 'contributions holiday'. This means you can generally stop making contributions for a period of between three months and five years. You can apply to renew your contributions holiday at any time.
If you are suffering serious financial hardship, you can apply for a short contributions holiday of three months (or more if the IRD agrees) at any time after you’ve made your first contribution.
If you've been a KiwiSaver member for three years or more, for the purposes of purchasing your first home, you may be able to:
apply for a Government 'first home deposit subsidy', and
apply to make a one-off withdrawal from your KiwiSaver account.
What’s more, after 12 months membership of a KiwiSaver scheme, you may be able to divert up to half of your regular KiwiSaver contribution (not including any employer contribution) towards repaying the mortgage on your home. Contact 0800 500 648 for more information.
If you're buying your first home, the Government may provide a 'first home deposit subsidy' of up to $1,000 for each year you've been saving through a KiwiSaver scheme.
The maximum subsidy is up to $5,000. However if your partner is also saving through a KiwiSaver scheme, you can combine your subsidies.
You can apply for this subsidy after you’ve been saving through KiwiSaver for three years or more. Criteria, including household income caps and house price caps, apply and not all members will qualify. For more information visit www.kiwisaver.govt.nz.
Any deposit subsidy will be payable by the Government and not the KiwiSaver scheme.
Employer contributions are tax-free up to a maximum of 4% of your gross salary or wages or the value of your own contribution, whichever is lower. Any employer contribution over this amount is taxed at your relevant Specified Superannuation Contribution Withholding Tax (SSCWT) rate.
For example, if you and your employer both contribute 4%, all of your employer's contribution is tax-free.
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