Who can join?
Basic membership criteria
KiwiSaver membership is voluntary.
| If you're ... | then ... |
|---|---|
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yes - you can join KiwiSaver. ExampleWei is a 40 year old New Zealand citizen who works for the Ministry of Foreign Affairs and is currently posted in London. He can enrol in KiwiSaver because he's a state sector employee who's employed on NZ terms and conditions. |
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a person who:
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no - you can't join KiwiSaver. ExampleAnnabel is a 35 year old New Zealand citizen who's currently living overseas. She cannot enrol in KiwiSaver because she is neither living nor normally living in New Zealand. |
Joining if you're under the age of 18
Some scheme providers may accept applications from:
- under 18s wishing to opt in
- a parent wishing to join their child.
Example: Sally wants to open a KiwiSaver account for her 10 year old daughter Sue
Sally is thinking about setting up a KiwiSaver scheme for her daughter Sue. She thinks it's a great way to give Sue a head start and get her into a regular saving pattern. Sally contacts a scheme provider after comparing a number of schemes, and completes the application forms on Sue's behalf.
After the account is opened, in addition to the regular payments Sally makes into the account, Sue will also get:
- the $1,000 kick-start as a one-off payment
- an ongoing fee subsidy of $40 per year.
Sue starts part-time work at age 16, so she starts making contributions from her wages.
When Sue turns 18, member tax credits (that match her contributions up to a maximum of $20 per week, or $1,042.86 per year) will be automatically added to her KiwiSaver account and she'll start to receive an employer contribution.
When Sue is thinking about buying her first home, she:
- may be eligible for the first home deposit subsidy, and
- may also be able to use some of her ongoing contributions to help pay her mortgage.
Note:
If you're 16 or 17, starting a new job and wanting to join KiwiSaver, you need to talk to your chosen scheme provider. They will tell you if you can apply yourself, or if your parents need to do it on your behalf.
Joining between the ages of 60 and 65
If you join between the ages of 60 and 65, you won't be able to access your savings until you've been a KiwiSaver member for five years.
Example
Paul is 62 year old New Zealand citizen. He decides to opt in to KiwiSaver and becomes a member in September 2007. Paul will be able to access his savings in five years' time (September 2012), when he's 67 years old.
If you already have a retirement savings scheme
You can still join KiwiSaver even if you already save through another superannuation scheme. If you belong to KiwiSaver and another superannuation scheme which has a "complying fund", your member tax credit entitlement will be paid to the fund that applies first.
A complying fund will have membership criteria similar to KiwiSaver, such as your savings being locked in until the age of eligibility for NZ Super. You should ask your scheme provider if you're unsure whether your scheme is a complying fund.
Members of a complying fund are entitled to receive the member tax credit of up to $20 per week, but not the $1,000 kick-start or annual fee subsidy of $40 per annum.
If your employer makes contributions to your other scheme, this can count towards the compulsory employer contribution rate (criteria apply), so you may not be entitled to another employer contribution to your KiwiSaver scheme.
Ask your employer or existing scheme provider for more information, and consider discussing your options with a financial advisor.
If you're a state sector employee or belong to the State Sector Retirement Savings Scheme you can find out more information about what KiwiSaver means for the state sector.
If you join KiwiSaver will it affect your NZ Super?
Joining KiwiSaver won't affect your entitlement to NZ Super.
The deducting of pensions from NZ Super:
- is limited to overseas state pensions, and
- doesn't apply to pensions from voluntary private or employment-related superannuation schemes.
KiwiSaver is treated in the same manner as other voluntary private or employment-related superannuation schemes.
Is KiwiSaver right for you?
KiwiSaver schemes are run by the private sector and are:
- regulated in a similar way to other registered superannuation schemes, and
- governed by trust deeds.
KiwiSaver is not guaranteed by the Government, so if you decide to join, you invest in a KiwiSaver scheme at your own risk.
Before you decide to join you should consider your options. The table below is a suggestion of how to work out what to do.
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Step |
What to do | Find out more |
|---|---|---|
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1 |
Find out about the providers you're interested in and how they would invest your money. |
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2 |
Get a copy of the scheme's investment statement from the scheme provider. Every KiwiSaver scheme has an investment statement that will explain any specific rules, fees, terms and conditions. |
Contact the scheme provider directly to request an investment statement: |
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3 |
Get some impartial financial information. |
The Sorted website provides free information and calculators that may be useful. |
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4 |
Consider getting independent financial advice. We can't tell you if KiwiSaver is the right choice for you, and neither can your employer. |
Contact a financial advisor for advice on:
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Find out more
Forms and guides
Check out what KiwiSaver forms and guides are available.
Date published: 19 Dec 2007
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