What is it?
KiwiSaver is a voluntary, work-based savings initiative to help you with your long-term saving for retirement.
It's designed to be hassle-free so it's easy to maintain a regular savings pattern.
Work-based saving
For many people, KiwiSaver will be work-based. This means you'll receive information about KiwiSaver from your employer, and your KiwiSaver contributions will come straight out of your pay.
What you get when you retire
NZ Super provides for a basic standard of living in retirement, but it may not be enough for the kind of retirement you want.
KiwiSaver complements NZ Super to provide you with a better standard of living for your retirement. KiwiSaver is treated in the same manner as other voluntary private or employment-related superannuation schemes. This means that having a KiwiSaver account doesn't affect your eligibility for NZ Super or reduce the amount of NZ Super you would be eligible for.
To find out how much you're likely to need in retirement, visit the Sorted website or seek advice from a financial advisor.
Government initiative
The Government created the framework for the KiwiSaver initiative, to help New Zealanders financially prepare for retirement.
There's a range of membership benefits to encourage you to get saving. This includes:
- a $1,000 tax-free kick-start
- a member tax credit of up to $1,042.86 per year
- subsidised scheme fees, and
- a compulsory contribution from your employer.
Some people may also be eligible for help with the deposit on their first home.
Forms and guides
Check out what KiwiSaver forms and guides are available.
Date published: 01 Apr 2008
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