What is KiwiSaver?
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What it means
KiwiSaver is a long-term savings scheme run by private providers and administered by Inland Revenue. New employees aged 18 to 64 who are not already members are enrolled automatically when they start a job, and can opt out between the end of week 2 and the end of week 8. Members choose a contribution rate of 3.5%, 4%, 6%, 8% or 10% of gross pay, and their employer must add at least 3.5% on top for members aged 16 or over and under 65. The government adds a contribution each year too.
The default rates rose from 3% to 3.5% on 1 April 2026 and are legislated to rise to 4% on 1 April 2028. Members who cannot afford the higher rate can apply for a temporary rate reduction to stay at 3%. The money is locked in until 65. The main exceptions are buying a first home after 3 years of membership, significant financial hardship, serious illness or a life-shortening congenital condition, and moving overseas: after a year living outside New Zealand (except Australia) you can take out most of it, and if you move to Australia you can transfer it to an Australian super scheme.
Example
On a $60,000 salary at 3.5%, you put in $2,100 a year. Your employer adds $2,100 before ESCT, or $1,733 after it, and the government contribution is $260.72.
Run the numbers
Open the KiwiSaver calculatorRelated terms
KiwiSaver is New Zealand's voluntary work-based retirement savings scheme. From 1 April 2026 the default employee and employer rates are 3.5% each.
Yes, by applying to IRD for a temporary rate reduction. It lasts between 3 and 12 months, after which your rate goes back to 3.5% unless you apply again. Your employer can choose to match you at 3% while it applies.