Children

For those under 18, the idea of buying a first home seems a long way off. And retirement is even further away. But with KiwiSaver you can help get your children off to a headstart on their future.

KiwiSaver is great for Kiwi kids

KiwiSaver was set up by the Government to help Kiwis save for the future. That includes teenagers, children and even babies. On joining, the Government will pay $1,000 into their KiwiSaver scheme to kick start their savings. Under 18 year olds do not get the member tax credits of up to $10 per week or employer contributions.

Contributions for under 18 year olds

While under 18 year olds are not working they do not have to make any contributions, although some KiwiSaver schemes may have minimum contribution requirements. It's a good idea to add to your own savings each year, even if it's just a small amount like $50 a year. It all helps to keep your savings growing. With the ASB KiwiSaver Scheme you can currently make regular or lump sum contributions at any time for as little or as much as you like. You can make a lump sum payment by sending us a cheque or set up a regular contribution by direct debit. Forms for both these options can be found here.

Once an under 18 year old starts working, if they are a KiwiSaver member they will generally need to contribute at either 2%, 4% or 8% of their pre-tax wages like any other KiwiSaver member. But also like any other KiwiSaver member, 12 months after their first contribution they can also take a contributions holiday for between three months to five years. The Government kick-start contribution of $1,000 can count as the first contribution, so if you sign up your children well before they are likely to start working, they will have the option of contributing or taking a contributions holiday once they start working.

The Government announced in the 2011 Budget that the minimum employee contribution rate and the default contribution rate will increase from 2% to 3% of gross salary or wages with effect from 1 April 2013.

How to join

Under 16 year olds need to be enrolled by all legal guardians directly with a KiwiSaver provider. 16 and 17 year olds need to be enrolled by one legal guardian directly with a KiwiSaver provider and must co-sign the enrolment form. This means you need to obtain an investment statement for the KiwiSaver scheme you choose for them and complete the enrolment form. Get the ASB KiwiSaver Scheme Investment Statement here.

Under 18 year olds will not be automatically enrolled to KiwiSaver if they start or change jobs.