What is KiwiSaver? 

KiwiSaver is a voluntary savings scheme designed to help you put money aside for your retirement or buy your first home. You have the option to select who manages your savings and in which funds your contributions are invested.

If you're employed, your contributions will likely be taken straight from your pay. If you're self-employed or not working, you can make payments directly to the Inland Revenue Department or to your chosen KiwiSaver provider.

Aside from their personal contributions, eligible KiwiSaver members may receive additional contributions from their employer and the government, further boosting their savings. 

How does KiwiSaver work?

KiwiSaver helps you grow your retirement or property savings through regular contributions. You, your employer, and the government may all contribute to your account.

These combined contributions and investments help your KiwiSaver balance grow over time, to build a solid foundation for your future.

Contributions

Individual contributions

If you're employed, KiwiSaver contributions are automatically taken from your pay. You can choose to contribute 3%, 4%, 6%, 8%, or 10% of your before-tax income. If you don’t pick a rate, your employer will deduct the default 3%.

You can also make extra voluntary contributions at any time, either through the IRD or directly to your KiwiSaver provider.

To help boost long-term savings, the default minimum contribution rate will increase from 3% to 3.5% in April 2026, and then to 4% in April 2028.

Government contributions

If you're contributing to KiwiSaver and meet the eligibility criteria, the government adds 25 cents for every dollar you contribute, up to $260.72 per year. You will receive the government contribution if your yearly taxable income does not exceed $180,000. To receive the full amount, you need to contribute at least $1,042.86 from 1 July to 30 June. 

Employer contributions

If you're adding to your KiwiSaver from your wages, your employer is generally required to contribute at least 3% of your gross pay into your KiwiSaver account. Keep in mind that your employer pays tax on this percentage, so the actual amount added to your account may be slightly less.

Your employer is not required to contribute to your KiwiSaver if:

• they’re already paying into another approved scheme for you
• you’re not contributing to your KiwiSaver from your pay
• you’re older than the age of eligibility 
• you’re under 18. However, starting April 2026, employers will begin contributing to 16- and 17-year-old employees’ KiwiSaver, as long as these employees meet other eligibility conditions.

KiwiSaver scheme providers

KiwiSaver schemes are run by independent providers, and you get to choose which one suits you best. These providers are responsible for investing your contributions, helping your money grow over time.

They also offer financial advice to help you select the right investment fund based on your goals, risk tolerance, and how long you plan to invest. Providers must follow strict government standards and are monitored by the Financial Markets Authority.

Note that KiwSaver isn’t guaranteed by the government. Different KiwiSaver investment funds come with different levels of risk. You can switch providers or funds if your needs or preferences change.

KiwiSaver eligibility and how to join

Eligibility criteria

You can join KiwiSaver if you’re:

• a New Zealand citizen or entitled to live in the country indefinitely
• living or usually living in New Zealand. 

You don’t have to be employed to join - KiwiSaver is available to workers, self-employed individuals, students, and people who are not currently working.

Who is automatically enrolled in KiwiSaver?

If you’re aged between 18 and 65 and starting a new job, you’ll probably be automatically enrolled in KiwiSaver. Contributions will be deducted from your pay immediately, unless you decide to opt out within the specified timeframe.

How can employed individuals join?

If you’re already working but not yet a KiwiSaver member, you can still join through your employer or by signing up directly with a KiwiSaver provider.

How can self-employed or non-working individuals join?

If you’re self-employed, not working, or receiving other types of income (such as from a rental property or investment), you can still join KiwiSaver. In this case, you’ll need to contact a KiwiSaver provider directly and discuss your contribution amount and frequency. You can send your contributions through Inland Revenue or directly to your scheme provider.

Joining KiwiSaver if you’re under 18

If you're 16 or 17, you can also join KiwiSaver through a scheme provider. A parent or legal guardian will need to contact a provider and co-sign your application. 

Starting July 2025, eligible KiwiSaver members under 18 years old receive government contributions. Employer contributions for this age group begin in April 2026.

Opting out and savings suspension

If you got a new job and were automatically enrolled in KiwiSaver but decide it's not right for you, you can opt out on day 14 up to day 56 of starting your employment. If you opt out within this timeframe, any contributions made will be refunded.

In some situations, late opt-outs may be accepted for up to 3 months after your first contribution, such as if you didn’t receive the required KiwiSaver documents or if unexpected circumstances stopped you from opting out on time. 

If you joined directly with a provider, you generally can’t opt out, but you may be able to apply for a savings suspension instead.

Savings suspension

A savings suspension lets you pause your KiwiSaver contributions if you’re going through a difficult financial period. If you’ve been a KiwiSaver member for at least 12 months, you can take a 3-12-month savings suspension. You don’t need to give a reason, and you can take multiple suspensions, even back-to-back, as needed.

If you pause your savings, your employer normally won’t pay in either, unless your employment contract says otherwise. You can still get the government top-up by making voluntary KiwiSaver payments.

If you've been a member for less than 12 months, you may still qualify for an early savings suspension, but you’ll need to show evidence of financial hardship caused by circumstances beyond your control. The default period is 3 months, but longer breaks may be granted.

TIP: Having the right personal insurance can help protect your KiwiSaver funds during tough times.

Having insurance means you may not need to pause your contributions or withdraw your KiwiSaver early if life takes an unexpected turn. During periods when you can’t work, whether due to illness, injury, or disability, insurance benefits can help cover daily living costs, medical bills, and even rent or mortgage repayments, giving you more financial stability and helping protect the money you've worked hard to save.

Here’s how:

• The best health insurance plans can help pay for costly treatments and tests, cancer care, non-Pharmac-funded drugs, and overseas treatment. Some plans also provide a funeral support benefit.
• Other insurance types - life, disablement, trauma, income protection, and mortgage protection - provide either monthly or lump sum payments if you or your family member suffers from a terminal or critical illness, injury, disability, or passes away. You can use these payments as well as additional benefits for medical expenses, palliative care, home modifications, and funeral costs.
• Some of the best income cover or mortgage protection plans offer a retirement contribution benefit option, wherein your insurer may continue contributing to your KiwiSaver if you become disabled and can’t earn an income.

Is my KiwiSaver locked in for good?

While KiwiSaver is designed to help you save for retirement or buy a home, there are specific situations where you can access your savings earlier. 

Retirement

You can take out all or a portion of your KiwiSaver savings once you turn 65. 

Early withdrawal

Buying your first home

If you’ve been a KiwiSaver member for at least three years, you may be able to use your KiwiSaver funds to help buy your first home, which you intend to live in. (Previous homeowners may also be able to withdraw their KiwiSaver savings under certain conditions.)

You can withdraw your own contributions, those from your employer and the government, plus interest you’ve earned. 

However, you’ll need to leave at least $1,000 in your KiwiSaver account. And if you have funds from an Australian Complying Superannuation scheme, you cannot use them for a first home purchase.

Moving overseas

If you move permanently to Australia: You can transfer your KiwiSaver savings to an Australian superannuation scheme. 

If you move to another country (other than Australia): After living overseas for at least one year, you can withdraw your KiwiSaver funds (your and your employer’s contributions, the $1,000 kick-start if you received it, interests earned, and fee subsidies) except any additional government contributions. You can also have your savings transferred to an approved foreign superannuation scheme.

Other life events

Your KiwiSaver may be treated as relationship property during a separation. In addition, if you transferred money from a foreign superannuation scheme, you might be able to withdraw funds to pay off related foreign tax or student loan obligations.

If you pass away, your KiwiSaver becomes part of your estate. It’s important to let your family know who your provider is so they can claim the funds when needed.

Bankruptcy or significant financial hardship

If you’re facing bankruptcy, you can use your KiwiSaver funds to repay debts, but your funds are generally protected from creditors while in the scheme.

You may also be able to access your KiwiSaver savings early if you're experiencing serious financial hardship. This includes situations where you: 

• can't meet your basic living expenses
• are struggling to pay the mortgage on the house you’re living in
• have a critical illness
• need to fund medical treatment, palliative care, or home modifications for yourself or a dependant
• need to pay for a dependant’s funeral expenses. 

Serious health issues

You may be eligible to withdraw your KiwiSaver early if you:

• have a congenital condition that shortens your life, so that you’re not expected to live to the age when New Zealand superannuation starts (currently 65), or
• have a serious illness, injury, or disability that permanently affects your ability to work or is life-threatening.

Why choose Policywise as your partner in saving for retirement

At Policywise, we make it easy for you to protect your retirement funds. If critical illness, injury, disability, or death impacts your personal or family income, your financial plans shouldn’t fall apart.  

That’s why we make sure you’re set up with the right insurance cover so your KiwiSaver contributions stay on track and your retirement savings stay intact.

Policywise is a 100% free service which tells you which health, life, and disability insurance provider best fits your needs. We offer fast, comprehensive, and easy-to-understand comparisons of all leading providers and a simple summary clearly recommending which insurer is best for your situation.

Not all insurance policies are the same. Policywise can help you sort out the duds, avoid the lemons, understand the fine print and exclusions, and get the right insurance for you and your family.

We make the important decision of where to buy your insurance super easy. We’ll answer your questions, provide experienced advice and quotes, and manage all the back and forth throughout the application process. Taking out your cover through us means you'll have our lifetime support and claims advocacy, and we'll help you negotiate a positive outcome at claim time. We can also take care of lodging any claims on your behalf and back you up if the going gets tough.

Check out the reviews on our homepage for how other New Zealanders have found our service, because now is the time to get your retirement and insurance plans sorted. Give your family or someone you love the most outstanding financial support possible. Book a 5-minute callback with Policywise today; our service is fast and free.