KiwiSaver 101 — Made Simple

KiwiSaver is one of the easiest ways to build long-term wealth in Aotearoa. On this page, you’ll learn what KiwiSaver is, how your money grows, what you (and your employer) put in, what the Government pays, and how to use it for a first home or retirement.

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What is KiwiSaver?

KiwiSaver is a voluntary savings scheme designed to help New Zealanders save for retirement, with a possible first-home boost for eligible members. You (and often your employer) contribute regularly; your provider invests the money in funds that can grow over time. You generally access your savings at 65 (with specific exceptions listed below).

How KiwiSaver works (the basics)

You contribute a small percentage of your pay.
Your employer contributes (if you’re eligible and contributing through payroll).
The Government may contribute each year if you’re eligible.
Your provider invests your money in a fund (e.g., Conservative, Balanced, Growth).
Over time, returns (minus fees and tax) help grow your balance.

Tip: Contribution settings are changing in stages from 2026 (see “Contributions at a glance” below).

Contributions at a glance

Your contributions (employee)

Standard employee contribution rates you can choose from: typically 3%, 4%, 6%, 8% or 10% of your before-tax pay. (Some settings are changing from 2026 — see “What’s changing?”)

Employer contributions

If you’re contributing from salary/wages and meet eligibility rules, your employer generally contributes a minimum match by default.

What’s changing?
Upcoming

From 1 April 2026, the default contribution rate for both employees and employers increases from 3% to 3.5%, and then to 4% from 1 April 2028. There is an option to temporarily remain at 3% from February 2026 if needed. Details and exceptions apply.

Government contribution (Member Tax Credit)

From 1 July 2025, the Government contributes 25 cents per $1 you put in (was 50c), capped at $260.72 per year when you contribute at least $1,042.86 in that 1 July–30 June year.

An income limit applies (no MTC above certain income, currently $180,000). See official guidance and provider explainers linked in our sources.

Quick example: Contribute $1,042.86 between 1 July and 30 June → you get the maximum $260.72 Government contribution (if eligible).

Choosing a fund (risk vs. time)

Your fund choice should reflect how long until you need the money and how you feel about ups and downs:

Conservative: Lower risk / lower expected return; aims for steadier value.
Balanced: Middle-of-the-road risk and return.
Growth/Aggressive: Higher risk / higher expected return; values can fluctuate more in the short term.

Not sure where to start? Use our LifeStage KiwiSaver tool to get a personalised fund-type suggestion based on your time horizon and risk tolerance.

Find your fund type

Using KiwiSaver for your first home

If you’ve been a KiwiSaver member for at least 3 years and meet the criteria, you may be able to withdraw most of your balance to help buy your first home. Typically you can withdraw your contributions, employer contributions, government contributions, and returns, but you must leave at least $1,000 in your account and can’t withdraw Australian super transfers. Criteria and exceptions apply; check details with your provider and Kāinga Ora.

See if you can use KiwiSaver for your first home

Accessing KiwiSaver at 65 (and after)

You can generally withdraw your KiwiSaver at 65. If you joined before 1 July 2019, there may be a five-year lock-in from when you joined (unless you opt out at 65). If you keep contributing during that period, your employer may also need to keep contributing; rules vary, so check the official guidance and your employer’s obligations.

Planning retirement income?

Fees and tax (quick overview)

Fees: Providers charge fees that are deducted from your balance — lower fees can make a big difference over time. Compare fees across funds before switching.
Tax (PIR): KiwiSaver investments are taxed using your Prescribed Investor Rate (PIR). Make sure your PIR is correct to avoid under- or over-paying tax.

Compare fees across funds

What’s changing (key dates)

1 July 2025

Government contribution set at 25c per $1 you contribute, max $260.72 per year (with an income cap).

1 April 2026

Default employee & employer rates increase to 3.5%; option to temporarily stay at 3% (from Feb 2026). 16–17-year-olds expanded eligibility for employer/Govt contributions.

1 April 2028

Default rates increase again to 4%.

These settings can change. Always check the latest official guidance before making decisions.

Common questions (FAQ)

Glossary

Contribution rate: The % of your before-tax pay you put into KiwiSaver.
Employer contribution: The amount your employer puts in if you’re contributing via payroll and eligible.
Government contribution / Member Tax Credit (MTC): Annual top-up for eligible members (limits and settings apply).
Fund type: How your money is invested (Conservative → Aggressive).
PIR: Prescribed Investor Rate — the tax rate applied to your investment returns.
First-home withdrawal: Ability to use most of your balance for a first home if you meet criteria (must leave at least $1,000; Aussie transfers excluded).

Next steps

Find your fund type Compare fees & performance See first-home options Plan your retirement income