KiwiSaver: Who Qualifies and What You Get
Learn how KiwiSaver works, including employer contributions and government credits to help build your retirement savings.
KiwiSaver is a voluntary retirement savings scheme designed to help you build a fund for your later years through consistent contributions.
Who it's for
This scheme is available to employees who fall within the age range of 18 to 65. It is designed for working individuals who want to build up their personal retirement savings over time.
What you get
Participants receive several types of financial boosts to help their savings grow. You receive employer matching contributions, which are at a minimum of 3%. On top of these employer contributions, you are also eligible to receive an annual government member tax credit. These combined inputs are intended to help increase the total amount of money available to you in the future.
What it costs you
The primary cost to you is the money taken directly from your earnings through automatic payroll deductions. Because this is managed through private providers, you are also required to spend time selecting and choosing a specific fund provider to hold and manage your money.
The catch to know
A common oversight is failing to check your specific fund type. Many people end up in "default" funds if they do not make a choice, and these default funds often provide lower long-term growth than other options. It is important to review your fund type to ensure it aligns with your needs.
How to apply
- Research and select a private provider to manage your funds.
- Set up your account with your chosen provider.
- Arrange for automatic payroll deductions through your employer.
- Check your fund type regularly to ensure it meets your growth needs.
- Find more information at the official portal: https://www.kiwisaver.govt.nz