KiwiSaver was set up to encourage Kiwis to save for their future. Read this page to find out why so many of us have started saving for our tomorrow with KiwiSaver:
An overview of KiwiSaver
KiwiSaver is a voluntary savings initiative created by the Government to encourage Kiwis to save for their retirement and help first home buyers. KiwiSaver offers attractive incentives to help as many people as possible to save. Incentives could include a $1,000 kick-start contribution when you first join KiwiSaver, member tax credits and employer contributions. It is designed to be flexible to encourage you to keep saving through all stages of your life.
KiwiSaver schemes are managed by private sector companies (like ASB Group Investments) and you can choose which company looks after your money for you.
Who can join?
You can join KiwiSaver if you're:
- a New Zealand citizen or entitled to permanent residency in New Zealand, and
- normally live in New Zealand (there are some exceptions to this), and
- are under the age of eligibility for NZ Superannuation (currently age 65).
How do contributions work?
If you're employed your contributions are taken from your pay and passed to Inland Revenue, before being passed on to your KiwiSaver provider. If you're employed you can choose whether to contribute 2%, 4% or 8% of your pre-tax salary or wages. After 12 months of contributing you can apply to take a contributions holiday of between three months and five years. At the end of each contributions holiday you can apply for a further contributions holiday.
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.
If you're self-employed or not employed you pay your contributions directly to your KiwiSaver provider. More information
When can I get my money out?
The money you save is generally locked away for your retirement with some exceptions. You can apply to withdraw your savings at the later of:
- When you become eligible for NZ Superannuation, currently age 65, or
- After five years of membership in KiwiSaver (this currently applies to anyone who joins after turning 60 years old). Membership of a complying superannuation fund may count towards this five years - please contact us for details on 0800 ASB RETIRE (0800 272 738).
Under certain circumstances you can apply to withdraw some or all of your savings early, for
- a first home buyers deposit,
- significant financial hardship,
- serious illness, or
- permanent emigration.
Why choose us?
Find out more about the ASB KiwiSaver Scheme: