KiwiSaver for kids and under 18s: Rules, contributions, and choosing the right fund

Can children under 18 join KiwiSaver?

Yes. There's no minimum age, so you can open a KiwiSaver account for a baby, toddler, or teenager.

Under-18s aren't automatically enrolled (as adult employees are), so the sign-up process has to be actively initiated.

The rules depend on your child's age:

• Under 16: At least one legal guardian needs to give consent, and will contact the chosen scheme provider on behalf of the child. Under 16s can't sign up on their own.
• 16 and 17 years old: Can sign up on their own, but the application must be co-signed by at least one legal guardian. If there is no legal guardian, they can get in touch with the chosen KiwiSaver scheme provider directly.

Either way, under-18s can only join by direct contact with a KiwiSaver provider. They can't be signed up through an employer, even once they start working.

Can you open KiwiSaver for a newborn?

Yes, you can open a KiwiSaver account for a newborn baby.

As the child's parent or legal guardian, you'll sign the application with your chosen provider on their behalf, and you'll need the baby's IRD number to complete it.

Starting an account from birth is entirely optional; however, it gives your child’s savings the longest possible runway to benefit from compounding returns.

Their KiwiSaver won't come with a government top-up until they're much older.

How contributions work for children's KiwiSaver

Who can contribute?

Parents, grandparents, and other family or friends can all put money into a child's KiwiSaver account. Most providers accept both regular contributions (such as a weekly or monthly automatic payment) and one-off gifts, such as for a birthday.

There's typically no minimum amount required, though it's worth checking out the process, as gifting into someone else's account can vary slightly between providers.

Government contributions

Children under 16 are eligible for the government KiwiSaver contribution (as of 1 July 2025). 16- and 17-year-olds can now receive 25 cents for every dollar they contribute, up to a maximum of $260.72 a year.

To get the full amount, your teenager would need to contribute at least $1,042.86 between 1 July and 30 June. If they contribute less, they may still receive a partial contribution.

The $1,000 KiwiSaver "kick-start" payment was scrapped by the government back in 2015, and no longer applies to new memberships.

Employer contributions

Compulsory employer contributions generally apply once a member is working and contributing through PAYE.

This extends to 16- and 17-year-olds (as of 1 April 2026): If your teenager is employed and contributing to KiwiSaver, their employer must start matching contributions, at the same default rate as adult employees (currently 3.5%, rising to 4% from April 2028).

There's no minimum contribution just to keep a child's account open. But once a working teenager opts in, standard employee contribution rates (3%, 3.5%, 4%, 6%, 8%, or 10% of gross pay) apply.

Is KiwiSaver worth it for kids? Benefits and considerations

Benefits:

• Time in the market. The earlier your child starts, the longer their savings can ride out market ups and downs and benefit from long-term growth.
• Compound returns. Modest, regular contributions can add up over decades. ANZ Investments illustrated that a five-year-old whose family contributed $5 a week to an aggressive fund could have around $5,000 (in today's dollars) by age 18, and roughly $105,000 by their mid-30s if they kept contributing through work.
• Good savings habits. Checking statements together with your child is a simple way to introduce ideas like investing, risk, and compounding.
• Family contributions. Grandparents and other relatives can contribute directly, as a meaningful alternative to gifts that get outgrown.
• A head start for a first home. A child's early KiwiSaver activity may eventually help with a first-home deposit once they're adult and meet the eligibility rules.

Considerations:

• It's a long lock-in. Aside from a first-home withdrawal or significant financial hardship, savings are generally inaccessible until age 65.
• Investment values rise and fall. Especially in higher-growth funds, balances can dip short-term, even if the long-term trend is upward.
• Not right for money you'll need soon. KiwiSaver isn't designed for near-term goals, like school fees or a car.

How to choose the best KiwiSaver fund for your child

A useful checklist to work through includes:

• Investment timeframe: how many years until the money might realistically be touched (often decades away, for a young child)
• Risk tolerance: how comfortable you are seeing the balance fluctuate along the way
• Expected withdrawals: whether you're thinking mainly about retirement, or also a possible first-home withdrawal one day
• Fees: how much a small balance might be eaten up by admin or management charges
• Investment philosophy: whether you prefer an actively or passively managed approach
• Ethical investing preferences: whether you want the fund to screen out certain industries or align with particular values
• Ability to review over time: how easy it is to check in and switch funds as circumstances change.

Fund types at a glance

KiwiSaver funds are generally grouped into five types, based on how much of the portfolio sits in higher-risk growth assets (like shares and property) versus lower-risk income assets (like cash and bonds):

Because a child's KiwiSaver account typically has a very long timeframe, many families lean towards growth or aggressive funds. However, the right fit still comes down to your own risk tolerance and goals, so get tailored advice rather than assuming higher risk suits every situation.

To compare funds directly, see our guide to the best KiwiSaver providers, or speak with a Policywise adviser.

A handful of providers have made changes for younger or low-balance members, such as waiving their annual membership fee for accounts held by under-18s or those under a certain balance, so fees don't quietly erode a child's savings. Ask any provider you're considering how they treat under-18 or low-balance accounts.

If you'd like your child's fund to screen out industries you're not comfortable with, our guide to ethical KiwiSaver options covers this in more depth.

Can my child switch KiwiSaver funds later?

Yes. Switching funds, whether within the same provider or to a completely different one, is generally straightforward and can be done at any time. Many families start a child in a higher-growth fund while they're young and review the choice periodically as circumstances, goals, or risk tolerance change.

How to open a KiwiSaver account for a child

Opening a KiwiSaver account for your child generally involves:

1. Choosing a provider. Compare fees, fund options, and any perks for under-18 accounts
2. Choosing a fund. Use the checklist above or get personalised advice to settle on a fund type that matches your goals
3. Gathering the child's IRD number. You'll need to apply for one if your child doesn't already have it
4. Having identity documents ready. These typically include the child's birth certificate and the parent or guardian's ID
5. Meeting the consent requirements. All legal guardians must consent if your child is under 16; one guardian co-signs alongside 16- and 17-year-olds
6. Setting up contributions, if you'd like to contribute regularly rather than with one-off gifts.

If comparing providers and paperwork sounds like a lot of work, Policywise can simplify the process by comparing providers and funds for a KiwiSaver that genuinely fits your child's situation.

At what age can children access their KiwiSaver?

Once your child's KiwiSaver account is open, their savings are generally locked in until age 65, in the same way as any adult member's. Two main exceptions can apply earlier in life:

• A first-home withdrawal, once they've been a KiwiSaver member for at least three years and meet the other eligibility criteria as an adult first-home buyer
• Significant financial hardship, assessed on a case-by-case basis, which allows an early, partial withdrawal in genuinely difficult circumstances.

These early withdrawal options are there for real need, but using them reduces the savings your child will eventually rely on. For a fuller breakdown of how and when withdrawals are possible, see our guide to KiwiSaver withdrawals.

Get independent KiwiSaver advice for your child