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KiwiSaver
KiwiSaver is a New Zealand savings scheme. Started operating on 2 July 2007, the scheme allows participants to normally access their KiwiSaver funds only after the age of 65, but can withdraw them earlier in certain limited circumstances, for example if undergoing significant financial hardship or to use as a deposit for a first home.
A policy initiative of the Fifth Labour Government of New Zealand (in office 1999–2008), KiwiSaver is governed by various Acts of Parliament, including the KiwiSaver Act 2006, which was passed in September 2006.
As at 31 March 2025, the Financial Markets Authority reported 3,385,856 New Zealand citizens were members of KiwiSaver, with an average balance of $36,349 per member. Annual contributions were $12.2 billion with investment gains of $6.4 billion, and with $123.1 billion in assets managed by KiwiSaver providers.
Anyone who is entitled to live in New Zealand indefinitely and who normally lives in New Zealand is entitled to join KiwiSaver. Those under 18 require parental consent to join. Participants choose to put their savings in one of several "approved savings schemes". They can only belong to one scheme at a time but can change schemes at any time. If they do not choose a scheme, and the participant is aged 18 or over, they will be assigned either to the employer's default scheme or to a government-selected default scheme. Each scheme offers several managed funds to invest the participants' savings in, with varying degrees of expected risk and return.
Contributions are made up of three main components:
From the start of the scheme until May 2015, those who joined KiwiSaver received a $1,000 tax-free "kick start" to their KiwiSaver account from the government. The Fifth National Government removed it effective from 21 May 2015 as part of its 2015 budget. Those aged 16 and over also receive from the government a "member tax credit" (MTC) of 25 cents per dollar contributed (or part thereof) for the first $1,042.86 contributed per year (1 July to 30 June; previously 50 cents per dollar prior to July 2025). The MTC is not a true tax credit; it is a monetary contribution paid by the government via Inland Revenue, mainly to offset the tax paid on interest earned. Those withdrawing KiwiSaver funds to help buy a first home may also get a deposit subsidy of up to $5,000 (existing homes) or $10,000 (new builds) from Housing New Zealand, provided they meet the required income, deposit and house price requirements.
A participant can access all their KiwiSaver contributions once they reach the age of entitlement for New Zealand Superannuation (currently 65), as long as they have been a KiwiSaver member for five years. Otherwise, KiwiSaver contributions can only be accessed (with restrictions) in the following circumstances:
Some provider funds offer a mortgage diversion scheme where some of the employee contributions can be used to make mortgage repayments instead of going towards Kiwisaver after a person has been signed up for 12 months. This is only allowed for repayments on the main home, and not for other properties such as investment or holiday homes. Employer contributions will not be able to be used for the mortgage.
KiwiSaver
KiwiSaver is a New Zealand savings scheme. Started operating on 2 July 2007, the scheme allows participants to normally access their KiwiSaver funds only after the age of 65, but can withdraw them earlier in certain limited circumstances, for example if undergoing significant financial hardship or to use as a deposit for a first home.
A policy initiative of the Fifth Labour Government of New Zealand (in office 1999–2008), KiwiSaver is governed by various Acts of Parliament, including the KiwiSaver Act 2006, which was passed in September 2006.
As at 31 March 2025, the Financial Markets Authority reported 3,385,856 New Zealand citizens were members of KiwiSaver, with an average balance of $36,349 per member. Annual contributions were $12.2 billion with investment gains of $6.4 billion, and with $123.1 billion in assets managed by KiwiSaver providers.
Anyone who is entitled to live in New Zealand indefinitely and who normally lives in New Zealand is entitled to join KiwiSaver. Those under 18 require parental consent to join. Participants choose to put their savings in one of several "approved savings schemes". They can only belong to one scheme at a time but can change schemes at any time. If they do not choose a scheme, and the participant is aged 18 or over, they will be assigned either to the employer's default scheme or to a government-selected default scheme. Each scheme offers several managed funds to invest the participants' savings in, with varying degrees of expected risk and return.
Contributions are made up of three main components:
From the start of the scheme until May 2015, those who joined KiwiSaver received a $1,000 tax-free "kick start" to their KiwiSaver account from the government. The Fifth National Government removed it effective from 21 May 2015 as part of its 2015 budget. Those aged 16 and over also receive from the government a "member tax credit" (MTC) of 25 cents per dollar contributed (or part thereof) for the first $1,042.86 contributed per year (1 July to 30 June; previously 50 cents per dollar prior to July 2025). The MTC is not a true tax credit; it is a monetary contribution paid by the government via Inland Revenue, mainly to offset the tax paid on interest earned. Those withdrawing KiwiSaver funds to help buy a first home may also get a deposit subsidy of up to $5,000 (existing homes) or $10,000 (new builds) from Housing New Zealand, provided they meet the required income, deposit and house price requirements.
A participant can access all their KiwiSaver contributions once they reach the age of entitlement for New Zealand Superannuation (currently 65), as long as they have been a KiwiSaver member for five years. Otherwise, KiwiSaver contributions can only be accessed (with restrictions) in the following circumstances:
Some provider funds offer a mortgage diversion scheme where some of the employee contributions can be used to make mortgage repayments instead of going towards Kiwisaver after a person has been signed up for 12 months. This is only allowed for repayments on the main home, and not for other properties such as investment or holiday homes. Employer contributions will not be able to be used for the mortgage.