What is KiwiSaver?
Saving for your future is important, but it’s often hard to get started and stick to it. That’s why the government created the framework for KiwiSaver. It’s a work-based savings scheme that all employers must participate in but is voluntary for employees to join. KiwiSaver investments are managed by a carefully selected group of professional investment managers.
It’s an effortless way to save, with your choice of contributions being deducted directly from your gross salary or wages at a rate of either three, four or eight percent. To help your savings grow even faster, your employer will pay a matching contribution of three percent.
If you have been automatically enrolled in KiwiSaver, you have eight weeks from starting your new job to decide if you want to remain a member, or opt out. If you are an existing employee, self-employed, not working, a student or a child in other circumstances, and you are eligible, you can join KiwiSaver by opting in.
As you are preparing for your retirement, your savings are generally “locked in” until you reach retirement age (currently 65), or after five years membership, whichever is later. You may be able to withdraw your money earlier under special circumstances.
The earlier you start saving with KiwiSaver, the better your quality of retirement will be. Joining is easy, whether through automatic enrolment when starting a new job or by choosing to join, anytime.
Why should I join KiwiSaver?
Whether you are currently saving for your future, or you want to start, the government will help you by giving you a number of benefits as a KiwiSaver member. KiwiSaver is designed to make it easy to save towards a secure and enjoyable retirement.
Here are some of the key features and benefits:
There are some decisions you’ll need to make, like which scheme you want to invest in, how much you want to contribute, and what mix of investments you should choose. We’ll help you work out your KiwiSaver options as part of your overall financial plan, and review them with you as your circumstances change, to make sure you’re heading towards a secure and happy retirement.