Project your KiwiSaver balance at 65 with employee, employer (3%) and government ($521.43/yr) contributions. Compare contribution rates.
A 30-year-old on NZ$70,000 contributing 3% (+ 3% employer + govt $521) at 6% return will have approximately NZ$390,000 at 65. Increasing to 8% grows this to roughly NZ$650,000. That extra 5% costs ~$67/week but adds NZ$260,000 to your retirement.
| Your Rate | Weekly Cost | Your Total | Employer Total | Balance at 65 |
|---|---|---|---|---|
| 3% | $40 | $73,500 | $73,500 | NZ$390,000 |
| 4% | $54 | $98,000 | $73,500 | NZ$455,000 |
| 6% | $81 | $147,000 | $73,500 | NZ$520,000 |
| 8% | $108 | $196,000 | $73,500 | NZ$650,000 |
| 10% | $135 | $245,000 | $73,500 | NZ$780,000 |
Includes 3% employer match + $521.43/yr govt credit. Salary growth 3%/yr. Exact figures depend on fund performance.
| Starting Age | Years to 65 | Balance at 65 | Monthly Income (4%) |
|---|---|---|---|
| 20 | 45 | NZ$710,000 | NZ$2,370 |
| 25 | 40 | NZ$530,000 | NZ$1,770 |
| 30 | 35 | NZ$390,000 | NZ$1,300 |
| 35 | 30 | NZ$280,000 | NZ$930 |
| 40 | 25 | NZ$195,000 | NZ$650 |
KiwiSaver is New Zealand's workplace retirement savings scheme. You contribute 3%, 4%, 6%, 8% or 10% of your gross salary, your employer adds a minimum 3%, and the government contributes up to $521.43 per year (the member tax credit β 50c for every $1 you contribute, up to $1,042.86). Your money is invested in a KiwiSaver fund (conservative, balanced, growth or aggressive) and grows tax-paid until you reach 65.
At age 65, you can withdraw your entire KiwiSaver balance tax-free. Before 65, withdrawal is only possible for a first home purchase (after 3+ years membership), significant financial hardship, serious illness, or permanent emigration. You can also use KiwiSaver with the First Home Grant β up to $10,000 for new builds or $5,000 for existing homes. Use our NZ Mortgage Calculator to plan your home purchase alongside KiwiSaver.
Contributing 3% ($2,100/yr) plus employer 3% ($2,100/yr) plus govt credit ($521/yr) with $15,000 starting balance gives approximately NZ$390,000 at 65. Increasing to 8% costs an extra $67/week but grows the balance to ~NZ$650,000 β an extra NZ$260,000 for retirement.
Employee rates are 3%, 4%, 6%, 8% or 10% of gross salary. Minimum employer contribution is 3%. Government contributes up to $521.43/year (member tax credit) if you contribute at least $1,042.86.
A 30-year-old on $70,000 at 3% with 6% returns will have approximately NZ$390,000. At 8%, approximately NZ$650,000. Starting earlier and contributing more makes a dramatic difference.
The govt contributes 50c per $1 you contribute, up to $521.43/year (member tax credit). To get the full amount, contribute at least $1,042.86/year (~$20/week).
Yes. After 3+ years membership, withdraw most of your balance (minus $1,000) for a first home. You may also qualify for the First Home Grant β up to $10,000 (new build) or $5,000 (existing home).
At 65 (tax-free), for a first home (3+ years), significant hardship, serious illness, or permanent emigration. You cannot withdraw simply for changing jobs.
3% is the minimum but likely insufficient for a comfortable retirement. 6-8% is recommended. 8% vs 3% can add NZ$200,000+ over 30 years for the same salary.
Contributions come from after-tax income. Investment returns are taxed at your PIR (10.5%, 17.5% or 28%). Withdrawals at 65 are tax-free. The government credit is also tax-free.
This ensures you get the full $521.43 government member tax credit β free money. Even if you're on a savings pause, make a voluntary lump-sum contribution before June 30 to qualify.
3% is the minimum but likely insufficient for a comfortable retirement. Increasing to 6% or 8% costs relatively little per week but can add hundreds of thousands to your balance by 65.
Growth or aggressive funds suit younger members (20+ years to retirement) with higher long-term returns. Conservative funds suit those near retirement. Review your fund type every 5-10 years.
You can request a savings suspension, but every year you skip costs thousands in lost compound growth and employer contributions. Avoid unless absolutely necessary.
After 3 years, use KiwiSaver for a first home deposit plus up to $10,000 First Home Grant (new build) or $5,000 (existing). This can significantly boost your deposit.
Your Prescribed Investor Rate (PIR) determines tax on KiwiSaver returns. If your PIR is set too high, you're overpaying tax. Check with IRD β common rates are 10.5%, 17.5% or 28%.