What is KiwiSaver?
KiwiSaver is the retirement savings scheme in New Zealand. It was introduced in July 2007.
In the KiwiSaver scheme, members build savings through regular contributions from their before-tax pay, from their employer, and from the government. Joining is voluntary, and you can opt out of making payments.
It does not replace New Zealand Superannuation (NZ Super), so you can receive super payments and have a KiwiSaver fund at the same time.
NZ Super is the government's pension scheme available to most New Zealand residents over 65 years old, regardless of how much they earn or how many investments they have.
KiwiSaver can also come in handy before you retire. You can access your savings to purchase a first home, or if you need the funds because of financial hardship.
How does KiwiSaver work?
KiwiSaver investments grow over time. Contributions are paid to your KiwiSaver fund by you, your employer, and the government. These contributions are invested by your provider in your chosen scheme.
Your provider charges fees, and you pay tax on your investments, but, over the years, you should make long-term gains.
Who can join KiwiSaver?
Most New Zealanders under the age of 65 are eligible to join KiwiSaver – even children. You can also join KiwiSaver if you are self-employed or unemployed.
You can join KiwiSaver, if you meet these three conditions:
- You're an NZ citizen, or entitled to live in NZ indefinitely.
- You're living, or normally living, in NZ.
- You're below the age of eligibility for NZ Super (currently 65 years old).
If you're over 18, you'll be automatically enrolled into KiwiSaver when you start work. If you're under 18, you can still join KiwiSaver, but you need to apply directly via your employer.
Children under 16 can be enrolled in KiwiSaver by their parent/guardian. Children aged 16 or older can enrol in KiwiSaver themselves if they have a parent/guardian co-sign.
The following people can put money into your KiwiSaver fund:
- You
- Your employer
- The government
How to join KiwiSaver
There are three ways to join KiwiSaver:
- Automatic enrolment: if you're not already a member, you'll be automatically signed up for KiwiSaver when you start a new job.
- Opting in through a provider: you can choose a scheme provider and contact them directly to join.
- Opting in through your employer: you can ask your current employer for an employee information pack and complete a KiwiSaver deduction form.
Applying to a KiwiSaver provider directly is usually a relatively easy online process.
You'll need to provide some basic details, such as your IRD number and a valid ID. In some cases, the new provider may contact you for some extra info, such as proof of address.
How much do you, your employer and the government put into KiwiSaver?
You make contributions to your KiwiSaver fund from your gross pay before tax. You choose which rate to contribute: 3.5%, 4%, 6%, 8% or 10% of your salary. You can also make additional contributions.
Employers make a compulsory minimum contribution of 3.5% towards their employees' KiwiSaver fund – unless they are already contributing to another superannuation fund for their employees.
The government makes an annual contribution to your fund, as long as you've made a minimum contribution during the financial year. This is called a member tax credit.
If you contribute more than $1043 to your KiwiSaver fund, the government will contribute a tax credit of $260.72. If you contribute less than $1043, the government pays 25 cents for every dollar you contributed.
The payment is means tested, so those in the top tax bracket, earning over $180,000 per annum, miss out on the government contribution.
The five different types of KiwiSaver funds
It's never too early to start your KiwiSaver investments. The longer you save for your retirement, the longer you'll have to grow your nest egg. But to ensure that you maximise your returns, you need to understand the difference between the basic KiwiSaver fund types, and which ones are most appropriate for where you are on your KiwiSaver journey.
Here is an overview of the five different types of KiwiSaver funds, plus the range of returns offered by the top-10 performers of each fund type over the last five years, according to the data on Canstar's KiwiSaver database, to 31/03/26.
Defensive/Cash KiwiSaver funds
In terms of risk, defensive or cash funds are the safest type of KiwiSaver investments. This is because they usually hold less than 10% in growth assets, such as stocks and shares, which can fluctuate in value. Instead defensive funds hold things like cash and government bonds.
Past 5-year range of returns: -0.82% to 3.72%
Defensive KiwiSaver funds: who are they good for?
Defensive funds are pretty much like putting your money in a regular savings account with a bank. You money is safe, and won't get hit by stock market slumps, but the trade-off is that you won't earn great returns.
As such, defensive funds are ideal places to park funds that you have earmarked for use in the near future, or don't want to risk losing. For example, if you've used KiwiSaver to save for a house deposit that you want to access in the coming months. Or if you're close to retirement and have earmarked a portion of your KiwiSaver to pay off a mortgage, or to splurge on a celebratory holiday.
Conservative KiwiSaver funds
Conservative funds are, again, best suited for risk-averse investors. Their make-up is similar to cash/defensive funds: mostly invested in bank deposits and government bonds, but with a higher proportion of stocks and shares, often around a third of investments.
This extra focus on growth assets means that there's more opportunity for slightly higher returns:
Past 5-year range of returns: 2.03% to 4.17%
Conservative KiwiSaver funds: who are they good for?
As with a defensive fund, a conservative fund is generally suited to those who plan to withdraw a sum withing a fixed timeframe, or for somebody who doesn't want to see their investments decline in value over the near term.
A conservative fund can also be a great option if you want to diversify your KiwiSaver investments and park a chunk of funds in a lower-risk fund, while still earning reasonable returns.
Balanced KiwiSaver funds
If you join KiwiSaver and don't choose your own fund, you are assigned a default provider and fund. Currently, the default providers are:
- BNZ
- Booster
- BT Funds (Westpac)
- Fisher Funds
- Simplicity
- Superlife
But all default funds are balanced funds, which contain between around a third to two-thirds of growth assets (shares and property, etc). Their greater proportion of growth assets means that balanced funds have more opportunity to earn decent returns, while still playing it cautious with a fair chunk of less riskier investments.
Past 5-year range of returns: 2.55% to 8.16%
Balanced KiwiSaver funds: who are they good for?
When KiwiSaver first started, default funds were all conservative funds. However, a few years ago they were switched to balanced funds, to ensure that people who were not proactive enough to choose their own KiwiSaver funds didn't miss out on possible long-term gains.
However, overall, balanced KiwiSaver funds are generally suited to those seeking mid-range, long-term returns, and who expect to withdraw their KiwiSaver money within the next five to 10 years.
Growth KiwiSaver funds
Growth KiwiSaver funds consist mainly of growth assets, from around 63% to 90%. As the name suggests, these funds have the potential for higher returns and balance growth. However, the downside is that they're more prone to swings in value, as investments move up and down with the market.
Past 5-year range of returns: 2.42% to 9.90%
Growth KiwiSaver funds: who are they good for?
If you're heading into growth fund territory, then you need to have a fairly large appetite for risk. This fund type is generally suited to an investor who does not expect to withdraw their funds for at least 10 years, and isn't worried if their balance falls during this timeframe.
In the first decades of KiwiSaver membership, growth funds can be a good investment tool to really kickstart your retirement savings, or to help grow a deposit for a first home.
Aggressive KiwiSaver funds
Aggressive KiwiSaver funds are for investment thrill seekers with an extremely large appetite for risk. These types of KiwiSaver funds hold a large proportion of their investments in growth assets – at least 90% to 100%.
Aggressive KiwiSaver funds are generally suitable for investors who are in it for the long haul, and are looking for strong long-term growth. But remember, it’s important to be comfortable with watching sharp drops in your balance before you opt for this fund type.
Past 5-year range of returns: -2.20% to 8.84%
Aggressive KiwiSaver funds: who are they good for?
Aggressive KiwiSaver funds are generally for investors who aren’t planning to withdraw funds for at least 10 years, and who want to apportion at least part of their KiwiSaver balance to chase the best possible returns.
However, as you can see from the returns from the top-10 aggressive funds on our database over the past five years, aggressive funds have failed to match the performance of growth funds, which highlights the risks involved.
What to consider when choosing a KiwiSaver fund?
You don't have to put all your KiwiSaver eggs in one basket
One of the key considerations when it comes to any investments is diversification. You don't have to go all in with one risk/fund profile. Some KiwiSaver providers allow you to split your KiwiSaver funds between different funds. So, for example, you could keep a third of your money in a safer, balanced fund, while chasing higher returns with the rest of your money in a growth fund.
Don't set and forget your fund type
The type of fund type that best suits your investment profile changes as you age and your KiwiSaver investments grow. It's important to regularly review your KiwiSaver and to be proactive in your choice of fund.
When a young person starts their KiwiSaver journey, growing their funds is often their key consideration. While a person facing retirement will often care more about reducing their fund's risk profile to preserve their balance.
To this end, some KiwiSaver providers offer investment products that automatically move investors' funds across risk profiles as they age. Such products can provide an easy way to manage time-of-life KiwiSaver fund choices.
How much you are paying in fees, against the rate of returns?
Generally speaking, you can expect to pay more in fees for funds containing a greater proportion of growth assets. This is because the rate of return is expected to be higher.
Also, many growth funds are more actively managed, rather than passively following a computer-compiled stock-market index. For more on the differences between active and passive funds, check out our article: Active Investing vs Passive Investing.
Are you using KiwiSaver to help save for a first home?
If you're using KiwiSaver to help save for a first-home deposit, you should take an active interest in your choice of fund. Growth funds can be a great vehicle to help build a sizeable deposit. However, once you reach your savings goal, you don't want to risk losing your deposit on a market downturn.
If you've funds in KiwiSaver that you plan to withdraw in the short term for a first home deposit, a lower-risk defensive or conservative fund can provide the assurance that your money will still be there when required.
How to keep track of your KiwiSaver
Here's how to keep track of your KiwiSaver balance and contributions.
How do I find out my KiwiSaver provider?
If you set up your KiwiSaver a while back and have opted to set and forget, you may not remember the name of your provider. But finding out is simple. You can call 0800 KIWISAVER or, login to myIR, where you'll be able to see your KiwiSaver account, including the name of your scheme provider.
How can I see my KiwiSaver contributions?
If you already know your provider, it's easy to access a more detailed breakdown of your KiwiSaver:
Use your myIR login, or register with IRD
An easy way to keep track of your KiwiSaver balance is to use the Inland Revenue Department's (IRD) myIR platform, which keeps tabs on your income tax, any student loans and KiwiSaver.
Through myIR you can see any government KiwiSaver contributions, how much is coming out of your salary, and how much your employer is contributing.
There are a few things to keep in mind when checking your KiwiSaver balance through myIR:
- myIR does not display your overall balance, as it does not include investment gains and losses
- It will only show contributions after they have been processed from your employer's payroll report. This can take a few months, depending on your employer, from when they are deducted from your salary or wages
- You will be able to see when Inland Revenue transfers the money to your KiwiSaver scheme provider
I don't have a myIR account
If you don't have a myIR online account, it's pretty easy to register. Just enter your IRD number into the Online Services Registration form, via the IRD website, and enter a few details to get going.
How do I track my overall KiwiSaver balance?
To access your balance you need to check with your KiwiSaver provider.
The way you access this information depends on your KiwiSaver provider. For example, if your KiwiSaver provider is the same as your everyday banking provider, you should be able to check your KiwiSaver balance by logging into your online banking account.
Other KiwiSaver providers generally have a secure online login system, similar to any online banking site – or they might even have their own phone app – where you can access your KiwiSaver information.
If you're unsure how to check your KiwiSaver balance, contact your KiwiSaver provider directly.
Why it's important to track your KiwiSaver balance
It's always good to be in total control of your finances. Whether day-to-day transactions or long-term investments. But there are a number of reasons why keeping on top of your KiwiSaver should be part of your financial planning:
A first home deposit
While KiwiSaver was originally designed to provide retirement funds, it can also be used as a way of saving towards a first home.
So if you're building a first-home deposit, your KiwiSaver could be crucial. Knowing your balance will help you plan and budget for your home purchase.
Using your KiwiSaver savings to buy a property can also impact your investment choices, for example focusing on 5- or 10-year, rather than longer term, returns. Such decisions can affect your choice of KiwiSaver fund.
The right fund for your retirement
If you're saving for retirement, keeping on top of your KiwiSaver balance gives you the opportunity to assess whether you're on track with your retirement investment goals.
Being in control of your savings also allows you to amend your investment strategy to match your stage of life. For example, switching to less risky funds and investments as you approach retirement to lock in your gains.
Value for money
KiwiSaver providers charge fees for their services, and it's worth knowing how much you're paying to ensure that you're getting value for money.
Are the fees you're paying worth the returns on your investments? And how does your scheme rate against those from other KiwiSaver fund providers?
To make informed decisions
If you don't keep up to date with where your KiwiSaver funds are invested, the returns they're earning and your provider's fees, you'll not be able to make the correct decisions about your financial future.
Keeping track of your contributions will help you make informed decisions about your investments, which can make a big difference to your KiwiSaver balance when you retire.
How can you access your money?
Most people are eligible to access their KiwiSaver funds when they turn 65, which is the age that you qualify for NZ Super. If you join KiwiSaver after you turn 60, you have to wait a minimum of five years before you can access your savings.
Alternatively, you may be able to make an early withdrawal of part or all of your savings when you:
- Buy your first home (if you have been contributing for three years or more).
- Move overseas permanently
- Suffer significant financial hardship
- Become seriously ill
What recent changes have been made to KiwiSaver?
This year, the default rate of contributions for employers and employees increased from 3% to 3.5% of a person's wage. And from April 2028, the default KiwiSaver contribution rate will lift to 4%.
In the long term, this will increase the retirement savings of KiwiSaver members, but it will mean they'll notice a small drop in their take-home pay as a consequence.
You can apply to remain at the lower 3% contribution level for 12 months. However, you'll need to apply annually to stick at 3%, and you'll only receive a 3% employer contribution, too.
So, if you can, it's probably better to accept the contribution increases ... or you could opt to contribute even more of your salary to your KiwiSaver: 4%, 6%, 8% or 10%.
How to maximise your KiwiSaver
If you want to maximise your KiwiSaver, you can't just set it and forget it. You need to take an active role in your fund and your contributions. Thanks to providers' apps and websites, it's easy to keep tabs on your savings. So follow our six easy steps, and max out your KiwiSaver investments:
1. Increase your KiwiSaver contributions
The most obvious way to grow your KiwiSaver account balance is to put more money into the fund. Most employed KiwiSaver members contribute at the minimum contribution rate of 3.5% of before-tax salary. But you can contribute: 4%, 6%, 8% or 10% of your before tax pay. If you don't choose a contribution rate, by default you'll pay the minimum level of 3.5%.
By increasing your contribution rate, you can add thousands to your KiwiSaver account balance over time.
If you want to change the percentage you contribute, you'll need to notify your employer in writing. There's also the option to complete a KiwiSaver deduction form (KS2) to give to your employer.
2. Make voluntary contributions to your KiwiSaver account
Another way to maximise your KiwiSaver is to deposit extra funds into it. For example, a work bonus. You can do this at any time, even if you're not in paid employment.
You can make voluntary payments directly to your scheme provider, or via the IRD through the pay-tax function offered by most NZ banks. To do this through IRD, log onto your online banking, pick the Pay Tax option, enter your IRD number, and choose the KiwiSaver tax type, which has the code KSS.
The key point to remember when making KiwiSaver top-ups is, once you've transferred your money to the fund, it's locked in. You won't be able to touch the money until you withdraw it for retirement or a first-home deposit.
3. Escape the default fund
If you don't choose your own scheme provider, and your employer doesn't have a preferred scheme provider, Inland Revenue will choose one for you from government-appointed default providers. Currently default schemes are balanced funds.
Generally speaking, default funds are not the most suitable choice for members in their 20s, 30s, 40s, or possibly even for investors in their 50s. This is because members over ten years away from accessing their funds have the time to ride out the fluctuations associated with higher-risk growth funds.
4. Minimise your KiwiSaver account fees
Every dollar counts when it comes to KiwiSaver. So, minimising fees is important to help you get the best KiwiSaver returns possible. Look for fee waivers. A fund that waives KiwiSaver fees for children under the age of 18, if an annual deposit is made, could lead to savings.
It's also worth weighing up what you're being charged in fees. Some funds charge more than others – especially those that charge performance fees based on how much growth they achieve each year on your KiwiSaver account balance.
Of course, a fund's fees needs to be balanced against the growth it achieves.
5. Make sure you get the full member tax credit
If you're contributing to your KiwiSaver scheme and are between 16 and 64 years old (or older if you have been a member of KiwiSaver for less than five years), then you’re entitled to a member tax credit from the government.
The maximum annual member tax credit you're entitled to is $260.72 per year. To get the full member tax credit automatically, you have to contribute at least $1,042.86 a year, from 1 July to 30 June.
Employer contributions, government contributions and amounts transferred from Australia under the trans-Tasman retirement savings portability do not count towards the minimum contribution requirement.
If you join KiwiSaver part way through the annual period (1 July to 30 June), you'll receive a member tax credit based on the number of days in the year that you've been a KiwiSaver member.
Member tax credits are paid out annually around July/August.
To be eligible you also need to reside mainly in NZ, except if:
- You're a government employee who is serving outside NZ.
- You're working overseas as a volunteer, or for token payment, for a charitable organisation named in the Student Loan regulations.
- The work meets one or more of the requirements set out in the Student Loan Schemes Act 1992.
Member tax credits stop when the member hits the age of eligibility for superannuation (65) or has been in the KiwiSaver scheme for five years, whichever comes first.
6. Take interest in your KiwiSaver statement
To increase your chances of boosting your KiwiSaver balance, it pays to take an active interest and keep track of your investment. You can do this by reading all your member statements, as well as any newsletters, to get a better understanding of how money is being invested on your behalf.
How to switch KiwiSaver providers
It's a simple process to change KiwiSaver providers. Simply visit the new provider's website and sign up. Your new provider will handle the withdrawal of your funds from your current provider and switch them over for you. So you shouldn't need to do anything more.
Keep in mind that changing over your funds can take up to two weeks and your current provider may charge a leaving fee. So it pays to check the terms first.
Good reasons to swap providers:
- The new provider offers better service, tools and communication.
- The new provider charges lower fees than your current provider.
- If your current KiwiSaver provider has consistently made returns well below average over a long period of time.
Not so good reasons to swap providers:
- If you've been recommended to change to a new provider, but this recommendation has come from someone who will benefit from the swap (eg, a bank or adviser).
- If you've read that another provider's fund/s have been making far higher returns than your current provider. These could just be based on short-term returns.
As always, do your research and check you new provider's fees, services and a fund's long-term results.
