What Is KiwiSaver?
KiwiSaver is a voluntary savings programme that helps people in New Zealand save for two main things: retirement and buying their first home. It was introduced by the government to encourage regular savings, with added incentives like employer contributions and government bonuses along the way.
When you join KiwiSaver a percentage of your pay is automatically set aside and invested in a fund of your choice. These small regular contributions will hopefully grow into a valuable nest egg.
How Do You Join KiwiSaver?
If you start a new job and you’re eligible you’re usually enrolled automatically. You can choose to stay in or opt out within the first few weeks. If you're self-employed or not working you can still join by contacting a KiwiSaver provider and setting up regular or one-off contributions.
To join, you must be:
A New Zealand citizen or permanent resident
Living (or normally living) in New Zealand
Under the age of 65 (although people over 65 can still join and contribute if they wish)
How Much Do You Contribute?
If you’re employed you can choose to contribute 3%, 4%, 6%, 8%, or 10% of your gross (before tax) pay. Your employer must also contribute at least 3%, unless you're under 18 or over 65. From April 2026, the minimum contribution is 3.5% and April 2027 will see a minimal contribution of 4%.
These contributions are automatically taken out of your pay by your employer and sent to Inland Revenue. Inland Revenue pass them on to your KiwiSaver provider.
If you’re self-employed or not working you can make voluntary payments at any time. There’s no minimum. If you want to qualify for the annual government contribution you’ll need to put in a certain amount each year (more on that below).
What’s the Government Contribution?
If you’re aged 18–64 and contribute at least $1,043 between 1 July and 30 June each year the government adds 25 cents for every dollar you contribute, up to a maximum of $260.72.
This is called the Member Tax Credit and it’s one of the easiest ways to grow your savings. If you can manage to contribute just over $20 a week you’ll receive the full top-up each year.
Choosing a KiwiSaver Fund
When you join KiwiSaver your money is invested in a fund managed by a KiwiSaver provider. These funds vary based on risk level and investment strategy. Common fund types include:
Conservative – lower risk, lower returns, more stable
Balanced – medium risk, medium returns
Growth or Aggressive – higher risk, higher potential returns over time
If you don’t actively choose a fund you’ll be placed in a default fund. These are balanced funds managed by a government-appointed provider.
Choosing the right fund depends on your age, goals, and how comfortable you are with risk. For example, if you’re young and saving for retirement a growth fund might be better. If you’re planning to buy a house soon a conservative fund may be safer to protect your deposit.
Using KiwiSaver for Your First Home
One of the biggest benefits of KiwiSaver is that you can use it to help buy your first home. If you’ve been contributing regularly for at least three years you can withdraw most of your KiwiSaver balance to use as a deposit.
You must be buying your first home (or meet certain conditions if you’ve owned property before) and the home must be intended as your main place of residence.
This withdrawal can make a big difference in helping first home buyers get onto the property ladder.
When Can You Access Your Money?
For most people KiwiSaver is a retirement savings plan. That means you can access your money when you turn 65.
However, you may also be able to withdraw funds early in certain situations, such as:
Buying your first home
Experiencing significant financial hardship
Being diagnosed with a serious illness or terminal condition
Permanently emigrating (with some conditions)
It’s designed to be long-term so early withdrawals are only approved in specific situations.
Why KiwiSaver Matters
KiwiSaver is more than just another deduction from your pay, it’s a powerful savings tool with built-in benefits that can grow your money over time. With employer and government contributions, plus investment returns, it gives you a head start toward retirement and home ownership.
By understanding how it works, choosing the right fund and contributing regularly you can make KiwiSaver work smarter for you — whether you're just getting started or looking to optimise your savings.
It’s your future and KiwiSaver can help you build it.