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Work-Based Savings For many people, KiwiSaver will be work-based. This means you'll receive information about KiwiSaver from your employer, and your KiwiSaver contributions will come straight out of your pay. What you get when you retire? NZ Super provides for a basic standard of living in retirement, but it may not be enough for the kind of retirement you want. KiwiSaver complements NZ Super to provide you with a better standard of living for your retirement. KiwiSaver is treated in the same manner as other voluntary private or employment-related superannuation schemes. This means that having a KiwiSaver account doesn't affect your eligibility for NZ Super or reduce the amount of NZ Super you would be eligible for. To find out how much you're likely to need in retirement, visit the Sorted website or seek advice from a financial advisor. Government initiative The Government created the framework for the KiwiSaver initiative, to help New Zealanders financially prepare for retirement. There's a range of membership benefits to encourage you to get saving. This includes: • a $1,000 tax-free kick-start • a member tax credit of up to $1,042.86 per year, and • a compulsory contribution from your employer. Some people may also be eligible for help with the deposit on their first home. KiwiSaver has several benefits and incentives: • starting incentive (kick-start) • member tax credit • compulsory employer contributions • savings withdrawal to buy your first home • first home deposit subsidy Who can join KiwiSaver? KiwiSaver membership is voluntary. You can join KiwiSaver if you're: • a New Zealand citizen, or entitled to live in New Zealand indefinitely, and • living or normally living in New Zealand (with some exceptions), and • below the age of eligibility for NZ Super (currently 65). You can't join KiwiSaver if you're: • holding a temporary, visitor, work or student permit • living overseas, unless you're a government employee: • serving outside New Zealand, and • employed on New Zealand terms and conditions, and • serving in a jurisdiction where offers of KiwiSaver scheme membership are lawful. If you're under 18 years old, you can choose to opt in to KiwiSaver if your provider allows, or your parents can sign you up. If you join when you're between 60 and 65, you won't be able to get your money out until you've been a KiwiSaver member for 5 years. You can still join KiwiSaver even if you already save through another superannuation scheme.
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