KiwiSaver is a work-based savings program designed to help New Zealanders save for their retirement. Employees put some of their salary or wages into a KiwiSaver account dedicated to their future. The government and employers may also contribute funds.
KiwiSaver is not compulsory for people starting a new job, but they will have to opt out rather than opt in if they don’t want to join.
Apart from using KiwiSaver savings to help get into a first home, there are limited ways KiwiSaver members may be able to access savings before they are eligible to make retirement withdrawals:
To find out more, check out our guide on how to withdraw KiwiSaver savings early.
If you’re an employer and want to help your employees understand KiwiSaver, choosing the ASB KiwiSaver Scheme as your employer chosen KiwiSaver scheme could be the answer.
We can arrange for a specialist to give a KiwiSaver presentation to your employees.
KiwiSaver is a work-based savings initiative designed to help Kiwis save for their retirement. As an employer, you’re required to help administer KiwiSaver including:
Check the Inland Revenue website for more information about your obligations.
Another important requirement is making employer contributions. If an employee is eligible, you will need to pay an employer contribution towards their KiwiSaver savings. The minimum is 3% of their before-tax salary or wage. All employers must pay this contribution, however, if you are already contributing to a complying superannuation fund, you can share this 3% between the two schemes.
When you're on board with us, your employees who don't choose their own KiwiSaver provider will automatically be enrolled in the ASB KiwiSaver Scheme. This gives them access to:
We'll also update your employees on any changes to the ASB KiwiSaver Scheme, and keep in touch to make sure their KiwiSaver account continues to work for them.
As an employer, you have certain obligations to meet. Ensuring you stay on top of all your obligations can be challenging and time-consuming.
Choosing the ASB KiwiSaver Scheme for your business could make things easier for you and take some of the stress away.
For a start, you’ll enjoy the full support of a dedicated relationship manager you can call on for help, information and advice any time.
At ASB, we’re here to make your job as easy as possible. So, get in touch now and let’s get things started.
When you hire a new person, sorting out KiwiSaver needs to be on your list of things to take care of, along with other payroll details.
Within seven days of a new employee starting, you need to give non-members information on joining, or a way to opt-out if they don't want to stay in KiwiSaver, including:
If your employee doesn't want to give you some information, such as their age, it's not a problem. You must send Inland Revenue the KiwiSaver Employee Details form before the employee's first pay.
As an employer, you also contribute to eligible employee's KiwiSaver savings.
The minimum is 3% of their before-tax salary or wages. This amount is in addition to their salary or wages. All employers must pay this contribution, however, if you are already contributing to a complying superannuation fund, you can share this 3% between the two schemes.
Some employers treat this employer contribution as part of the employee's total package when negotiating their pay.
For both members and non-members (who want to join), you need to advise Inland Revenue of their KiwiSaver preferences, using the KiwiSaver deduction form (KS2). This tells both you and Inland Revenue how much of their salary or wages they want to contribute to KiwiSaver. Keep a copy of this form for your records. If your employee doesn’t complete it, use the default contribution rate of 3%.
While waiting to hear back from Inland Revenue, you need to deduct KiwiSaver contributions from your employee’s pay at their nominated rate (3% if they didn’t select one), even if they’ve submitted a request to opt out or take a savings suspension.
This continues until Inland Revenue advises you that:
KiwiSaver members can select and change providers whenever they choose. When they first join KiwiSaver, if they do not select a provider they will be allocated to one of the nine government appointed default providers.
As an employer you can select a preferred provider for your employees. This means that if they don't select a provider of their own, they will become a member with that provider. If you have a preferred provider you need to:
The benefit of having a preferred provider is you know where your employee will end up if they don't make a choice. Also the provider may offer additional services to your workplace, such as financial literacy workshops.
If you wish, you can select ASB KiwiSaver Scheme as your preferred KiwiSaver scheme.
Choose ASB by completing the employer form. Return it to us and we’ll let Inland Revenue know.
Provide your staff with ASB KiwiSaver Scheme packs. You can also share our guides and tools to help employees get started with the ASB KiwiSaver Scheme.
Enjoy the benefits of having an ASB relationship manager and investment experts on hand to help you and your employees get the most out of the ASB KiwiSaver Scheme.
Find out how to help your staff save with the ASB KiwiSaver Scheme.
Interests in the ASB KiwiSaver Scheme (Scheme) are issued by ASB Group Investments Limited, a wholly owned subsidiary of ASB Bank Limited (ASB). ASB provides Scheme administration and distribution services. No person guarantees interests in the Scheme. Interests in the Scheme are not deposits or other liabilities of ASB. They are subject to investment risk, including possible loss of income and principal invested. For more information see the ASB KiwiSaver Scheme Product Disclosure Statement available from this website and the register of offers of financial products at www.disclose-register.companiesoffice.govt.nz (search for ASB KiwiSaver Scheme).
