The deal with Kiwisaver

In New Zealand there is currently no compulsory superannuation. Some organisations, especially within the public sector, do offer a superannuation as a benefit.

Having said that, the government has implemented Kiwisaver which is a voluntary, long-term savings initiative to help set you up for your retirement. Most KiwiSaver members will build up their savings account through regular contributions from their pay and employer.

The six financial institutions appointed to be default scheme providers are:

• AMP Services (NZ) Limited
• ASB Group Investments Limited
• ING (NZ) Limited
• Mercer Human Resource Consulting Limited
• National Mutual Corporate Superannuation Services Limited (trading as AXA New Zealand)
• TOWER Employee Benefits Limited
  
  

Please note that you are allowed to join other schemes outside these. 

Contributions are either 2%, 4% or 8% of your income with your employer matching 2% of your income. The Government will match you up to around $20 per week. You are able to access your money at the age of 65 (the current retirement age) or if you permanently leave New Zealand, suffer serious illness or severe financial hardship.

The government will give you:

• a $1000 tax free one off kick-start when you join the scheme
• a member tax credit of up to $1,042.86
• opportunity to apply to withdraw the contributions made by you and your employer towards a first home deposit after 3 years
• opportunity to apply for a first home deposit subsidy through Housing New Zealand after 3 years

There are quite specific rules around Kiwisaver so we recommend that you familiarise yourself with the scheme. Find out more information on Kiwisaver here.

Register with us now and take the next step in your career.