KiwiSaver for Kids: Tips to Set Them Up for Future Success

KiwiSaver isn’t just for adults, it can also be a powerful tool to help kids build long-term wealth. While children don’t get government contributions or employer payments like working adults do, the benefits of starting early can be significant. With decades of potential growth ahead even small contributions now can add up to something substantial by the time they reach adulthood or retirement.

Here’s how to get started and why it’s worth considering KiwiSaver for your children.

Step One: Get an IRD Number

Before you can enrol your child in a KiwiSaver scheme, they’ll need an IRD (Inland Revenue Department) number. This is New Zealand’s tax identification number and is required for opening a KiwiSaver account.

You can apply for an IRD number for your child through the IRD website or by visiting a local branch of NZ Post with the required documents, such as a birth certificate and proof of identity.

Why It’s Worth Starting Early

Even though your child won’t be earning income (and therefore won’t qualify for the member tax credit or compulsory employer contributions), the real advantage lies in the long-term power of compounding returns.

Let’s say you contribute just $10 a week from the time your child is born. Over 18 years, that adds up to more than $9,000 in contributions alone. But with investment growth over time — especially if invested in a higher-risk growth fund — the total balance could be significantly more.

That money could help with their first home, or provide a strong foundation for retirement if left untouched. The earlier the investment starts, the more time it has to grow.

Choosing the Right Fund

Because children have such a long investment timeline, many parents choose to place their child’s KiwiSaver in a growth or aggressive fund. These funds come with more ups and downs but tend to deliver stronger returns over decades.

Of course, it's always a good idea to review the fund options available and ensure you’re comfortable with the level of risk. Some providers even offer funds designed specifically for children or under-18 members.

Making Contributions

There’s no minimum requirement to contribute to a child’s KiwiSaver. You can set it up however best it works for you and your family. Some parents contribute a set amount each week or month, while others add money for birthdays, holidays, or milestones. Even irregular contributions add up over time.

You can also ask extended family to contribute in place of gifts — something many grandparents are happy to do!

What Happens to the Money?

KiwiSaver funds are locked in until retirement age (currently 65), or can be withdrawn for a first home after the age of 18 if the child has been a member for at least three years. This makes it a long-term savings option and not something they’ll be dipping into for everyday spending.

The upside? You’re helping build lifelong habits of saving and investing, while giving your child a serious head start on their financial future.

Give Your Child the Gift of a Head Start

KiwiSaver for kids is a quiet but powerful way to grow financial security over time. With the right fund and a little consistency, your contributions today could turn into a meaningful asset for their future.

It all starts with an IRD number, a KiwiSaver provider, and a long-term view. The earlier they start, the better the results will be.