KiwiSaver is a voluntary, work-based savings initiative with a range of membership benefits. If you’re working you contribute automatically from your pay. You may also receive contributions from your employer and the Government. If you’re self-employed, you can agree your contribution level with your provider.
KiwiSaver
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Default Fund
A handful of conservative funds picked by the government, for KiwiSaver members who have not yet chosen the fund that suits them best. When you opt into KiwiSaver, such as when you start your first job, you are automatically placed into one of these default funds until you choose the fund you want to be in. Employer Contributions What your employer puts into your KiwiSaver account (if you’re an employee). In addition to contributions from your wages and the government, employers are required to put in at least 3% of employees’ pay (before tax). First Home Withdrawal If you have been a member of KiwiSaver for at least three years, you may be able to withdraw all, or part, of your savings to put towards buying your first home. Since 1 April 2015, eligible members can withdraw their KiwiSaver savings (including tax credits), however at least $1,000 must remain in your KiwiSaver account. You must intend to live in the property and it cannot be used to buy an investment property. Member Tax Credit (MTC) The government’s annual contribution to your KiwiSaver account, matching 50 cents for every dollar you put in, up to a maximum of $521 each year.
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Employer Contributions
What your employer puts into your KiwiSaver account (if you’re an employee). In addition to contributions from your wages and the government, employers are required to put in at least 3% of employees’ pay (before tax).
-
First Home Withdrawal
If you have been a member of KiwiSaver for at least three years, you may be able to withdraw all, or part, of your savings to put towards buying your first home. Since 1 April 2015, eligible members can withdraw their KiwiSaver savings (including tax credits), however at least $1,000 must remain in your KiwiSaver account. You must intend to live in the property and it cannot be used to buy an investment property.
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Member Tax Credit (MTC)
The government’s annual contribution to your KiwiSaver account, matching 50 cents for every dollar you put in, up to a maximum of $521 each year.
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HomeStart
After three years of regularly contributing to KiwiSaver (of at least the minimum allowable percentage of your total income) you may be entitled to the HomeStart grant. If you are purchasing an existing/older home, the HomeStart grant is $1,000 for each year of contribution to the scheme. If you are purchasing a new home, a property bought off the plans or land to build a new home on, the HomeStart grant is $2,000 for each year of contribution to the scheme.
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Portfolio Investment Entity (PIE)
Managed funds which have special lower tax rates. When you invest in a PIE, the tax on the income from your investment will be based on your prescribed investor rate (PIR) which is based on your annual income.
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Prescribed Investor Rate (PIR)
The tax rate for your investment earnings from a PIE such as KiwiSaver.
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NZ Super
New Zealand Superannuation is the pension that the government currently pays to all eligible New Zealanders aged 65 or over. To be eligible for NZ Super you need to be a legal resident of New Zealand, having lived here for at least 10 years since turning 20. Five of those years must have been since age 50.
Default Fund
A handful of conservative funds picked by the government, for KiwiSaver members who have not yet chosen the fund that suits them best. When you opt into KiwiSaver, such as when you start your first job, you are automatically placed into one of these default funds until you choose the fund you want to be in. Employer Contributions What your employer puts into your KiwiSaver account (if you’re an employee). In addition to contributions from your wages and the government, employers are required to put in at least 3% of employees’ pay (before tax). First Home Withdrawal If you have been a member of KiwiSaver for at least three years, you may be able to withdraw all, or part, of your savings to put towards buying your first home. Since 1 April 2015, eligible members can withdraw their KiwiSaver savings (including tax credits), however at least $1,000 must remain in your KiwiSaver account. You must intend to live in the property and it cannot be used to buy an investment property. Member Tax Credit (MTC) The government’s annual contribution to your KiwiSaver account, matching 50 cents for every dollar you put in, up to a maximum of $521 each year.
Employer Contributions
What your employer puts into your KiwiSaver account (if you’re an employee). In addition to contributions from your wages and the government, employers are required to put in at least 3% of employees’ pay (before tax).
First Home Withdrawal
If you have been a member of KiwiSaver for at least three years, you may be able to withdraw all, or part, of your savings to put towards buying your first home. Since 1 April 2015, eligible members can withdraw their KiwiSaver savings (including tax credits), however at least $1,000 must remain in your KiwiSaver account. You must intend to live in the property and it cannot be used to buy an investment property.
Member Tax Credit (MTC)
The government’s annual contribution to your KiwiSaver account, matching 50 cents for every dollar you put in, up to a maximum of $521 each year.
HomeStart
After three years of regularly contributing to KiwiSaver (of at least the minimum allowable percentage of your total income) you may be entitled to the HomeStart grant. If you are purchasing an existing/older home, the HomeStart grant is $1,000 for each year of contribution to the scheme. If you are purchasing a new home, a property bought off the plans or land to build a new home on, the HomeStart grant is $2,000 for each year of contribution to the scheme.
Portfolio Investment Entity (PIE)
Managed funds which have special lower tax rates. When you invest in a PIE, the tax on the income from your investment will be based on your prescribed investor rate (PIR) which is based on your annual income.
Prescribed Investor Rate (PIR)
The tax rate for your investment earnings from a PIE such as KiwiSaver.
NZ Super
New Zealand Superannuation is the pension that the government currently pays to all eligible New Zealanders aged 65 or over. To be eligible for NZ Super you need to be a legal resident of New Zealand, having lived here for at least 10 years since turning 20. Five of those years must have been since age 50.
