Understanding KiwiSaver.

1min read
Posted 10 April 22

KiwiSaver is a voluntary scheme set up by the government to help you save for a house or retirement. Employers usually set it up when you sign your contract because they also have to contribute to your savings. This means that they're paying you more on top of your agreed payments — it's just money you won't see until you either begin a mortgage or retire.

When you start KiwiSaver, you agree to set aside a little with every paycheque, based on a percentage of your wage. Usually that’s set at 3%, 4%, 6%, 8% or 10% of your total earnings. 

Your employer then has to match at least 3% of those earnings from the company' you work for to help you save. The government also contributes 50¢ to every $1 you save — up to  $521.43.

Am I on KiwiSaver right now?

Even if you weren't aware, you would have likely seen a KiwiSaver form when signing your employment contract. So, unless you're contracting, freelancing or volunteering, your employer is legally required to contribute.

If you're unsure about your KiwiSaver situation, talk to your employer about your contract and savings options.

Contracting or freelancing

If you're currently unemployed, working freelance, or on a contract, you may need to set up KiwiSaver yourself. To get the ball rolling, try contacting a service provider. You can also view a complete list of available providers on the IRD's website.


Stop! Disclaimer!

Info and tools on the Yonda website are to be used as a guide only and do not constitute financial advice. Use Yonda as a starting point and then seek professional advice.