Can I afford it?

That's a good question. But with all the extra benefits of KiwiSaver, can you really afford not to? This section will help you understand the contributions you will need to make with KiwiSaver and the options you have.

What will I have to contribute if I'm employed?

• You will need to contribute 2%, 4% or 8% of your pre-tax salary or wages. For every pre-tax $10,000, 2% will be around $3.85 a week. Use the Sorted KiwiSaver calculator to work out how much your contributions would be.
  The Government announced in the 2011 Budget that the minimum employee contribution rate will increase from 2% to 3% of gross salary or wages with effect from 1 April 2013.
• You can also make additional voluntary contributions directly to your KiwiSaver provider at any time, if your KiwiSaver scheme allows you to do this.

Can I skip some payments if it gets too much?

• Your contributions will come directly out of your pay, so you can't actually miss the odd one. But after you've been contributing to KiwiSaver for a year you can choose to take a contributions holiday for between three months and five years.
• Remember though, if you stop saving, any compulsory employer contributions and member tax credits will stop too.
• You can stop a contributions holiday at any time and you can apply for another contributions holiday when one expires.
• In circumstances of significant financial hardship you can apply for a contributions holiday of three months in your first year of KiwiSaver membership.

What if I'm self-employed or not employed?

• If you are self-employed or not employed, you can agree your contribution level with your KiwiSaver provider (some may have minimum contribution levels).
• If you are self-employed and pay yourself a salary or wages (salary or wages is as defined in the KiwiSaver Act and includes most employment-related income that is subject to the PAYE tax regime) you may be treated as an employee and employer for the purposes of KiwiSaver contributions.
• With the ASB KiwiSaver Scheme there are currently no minimum contribution levels for either regular payments or lump sum payments so you can stop and start your contributions at any time.
• Remember if you'd like to get the maximum member tax credit, you'll need to save at least $20 a week or $1,042.86 a year (1 July to 30 June) and be eligible for the full year.