Helping Employees and Employers with KiwiSaver

KiwiSaver is a voluntary retirement scheme in effect 1st July 2007.

Automatic enrolment applies to all new employees between 18 and 65 years of age.

Employees can opt out within 8 weeks but can take a contribution holiday after 12 months if they want.

The Government will make a "kick start" payment of $1,000 

Contributions of 2%, 4% or 8% of gross pay are deducted from wages and paid to IRD which passes them onto a Scheme Provider for investment in funds chosen by the member.

Employers can also contribute. A matching contributions above the minimum 2% are paid to members’ accounts without having tax deducted.

Savings are locked in to the age of 65 other than for events such as: Serious illness or significant financial hardship, Permanent emigration, Purchase of first home.

Employers choosing a preferred provider for their employees are not deemed to be giving financial advice.

Existing employees and the self-employed can join voluntarily by contracting directly with a provider.