KiwiSaver Explained: A Guide To Retirement Savings in NZ

April 11, 2025

What Is KiwiSaver?

KiwiSaver is a retirement savings plan offered in New Zealand, designed to make saving up for retirement easy. The plan involves contributing a percentage of one’s income, or voluntary contributions to their account. Your KiwiSaver plan is managed by an independent KiwiSaver provider of your choice.

See list of KiwiSaver providers here: KiwiSaver providers – IRD

It is available to all New Zealand residents, regardless of age and work status.

How To Grow Your KiwiSaver Savings

A. Contributions

There are 3 main contributors to your KiwiSaver savings scheme:

Your contributions

Contributions from income range from 3%, 4%, 6%, 8%, and 10% as per your choice or voluntary lump sum payments.
Employer Contributions

Employers are required to contribute a minimum extra of 3% of your income towards your KiwiSaver scheme.
Government contributions

The New Zealand Government contributes $0.50 for every $1 you contribute. They can contribute up to a maximum of $521.43 per year.

B. Investment returns

Your KiwiSaver contributions are invested by your provider in various assets based on the type of fund you choose to generate returns that help grow your savings over time. Each fund carries a different level of risk, Higher risk can mean bigger gains or losses, while lower risk usually means steadier, smaller growth.

Claiming your KiwiSaver funds

Generally, your savings are locked away until you reach the retirement age of 65, or ready to buy a first home.

There are other circumstances that allow you to withdraw your KiwiSaver savings earlier like:

Moving overseas
Financial Hardship
Health Reason
Tax Liability
Student loan

Learn More

Learn more about KiwiSaver by consulting providers and through the IRD website:

KiwiSaver – IRD

KiwiSaver providers – IRD

Need Help with Accounting? We’re Here for You!

At DAD Accountant, we provide independent financial advice to help you understand your financial situation, learn how KiwiSaver works, decide if it’s right for you, and choose the best scheme or investment option. If you have any questions, we’re here to help—just get in touch.

April 12, 2025