All about KiwiSaver – and who it’s for
KiwiSaver is a voluntary, long-term savings scheme that helps you save for your retirement.
If you are employed, regular contributions come straight out of your pay and your employer also contributes 3% of your gross salary or wages (i.e. before tax), to help your savings grow.
You might be eligible for a contribution from the government of just over $520 per year. This is known as a Member Tax Credit (MTC).
All of these contributions are invested into the fund or funds of your choice and these are managed by professional investment managers.
Are you eligible for KiwiSaver?
You can join a KiwiSaver scheme so long as you are:
- a New Zealand citizen, or entitled to live in New Zealand indefinitely;
- below the age of 65 (the current age of New Zealand superannuation); and
- living permanently in New Zealand.
You cannot join if you are on a working, temporary, visitor or student visa.
You can choose your KiwiSaver provider
It is your choice. You can select your provider.
There are a range of KiwiSaver schemes to choose from. The Aon KiwiSaver Scheme is one of these.
Your employer may already have a preferred KiwiSaver scheme provider. You can go with that preferred provider or choose your own.
If neither you nor your employer selects a scheme, the Inland Revenue will allocate a scheme provider for you.
The myth that KiwiSaver is guaranteed by the government is not true. Your money will go up or down as the returns on the fund or funds you have chosen may be positive or negative.
You can find more information about the Aon KiwiSaver Scheme in our product disclosure statement.
Contribute the amount that works for you
When you join a KiwiSaver scheme, as an employee you can elect to contribute either 3%, 4% or 8% of your gross salary or wages (i.e. before tax) and the amount will be deducted from your pay. If you don’t let your employer know how much you want deducted, the rate will automatically be 3%.
Your employer needs to make a contribution of at least 3% of your gross pay. They may choose to pay more.
The contributions are paid to Inland Revenue and then transferred to your KiwiSaver scheme provider. When you first join a scheme this transfer won’t happen until after you have been a member for the first 3 months.
You can change your mind
If you are automatically enrolled when you start a new job, you can choose to opt out between week 2 and 8. To do this, send a New employee opt out request form (KS10) to Inland Revenue. Your employer will continue to make contribution deductions until they receive your notification of your opt out request from Inland Revenue . Inland Revenue will refund your contributions already deducted if you opt out.
Circumstances change? You can suspend contributions
It may be that changes in your life mean you need to suspend contributions for a while. KiwiSaver allows you to take a contributions holiday for a minimum of 3 months and up to five years. You can apply for this holiday if you have been a member of KiwiSaver for at least 12 months.
Self-employed or not working?
You can still join a KiwiSaver scheme. In these cases, you’ll need to agree with your KiwiSaver scheme provider how much to contribute and make your payments directly to them.
Payments will be a dollar amount rather than a percentage. Currently, there is no minimum annual contribution for members of the Aon KiwiSaver Scheme.
Remember, if you contribute at least $1,042.86 each year, you may be eligible for the member tax credit.
You can contact our helpdesk on 0800 266 463 to discuss your contribution options in more detail.
When you can get your KiwiSaver money
KiwiSaver is all about saving for your retirement, so generally, your savings are locked in until you’re 65 (or for 5 years if you joined after age 60).
You may, however, be able to make an early withdrawal of some or all of your money under certain circumstances, if you’re:
- buying your first home;
- moving overseas permanently (excluding Australia);
- suffering significant financial hardship; or
- seriously ill.
You can find out more about withdrawals here.
We answer some questions about joining KiwiSaver
Can I join if I already have a retirement savings scheme?
Yes you can. With both schemes working together, you’ll build towards your ideal retirement that much faster.
How old do I need to be before I can join?
You can join KiwiSaver at any age. However, the government won’t pay any member tax credits into your account until you reach the age of 18 and make contributions.
If you’re under 16 years of age, you’ll need the consent of both of your parents or guardians to join. If you’re aged 16 to 17, one of your parents or guardians will need to co-sign your application form with you.
Don’t have a legal guardian? Ask us about the requirements.
Can children join?
Yes, children can join the Aon KiwiSaver Scheme and benefit from reduced member fees.
When can’t I join KiwiSaver?
You can’t join KiwiSaver if you:
- have a temporary, visitor, work or student permit;
- live overseas (unless you are a government employee employed on New Zealand terms and conditions);
- are serving in a jurisdiction where offers of KiwiSaver membership are unlawful; or
- are over 65 years of age.
We appreciate you may still have questions about joining KiwiSaver. Please contact our helpdesk by emailing us or phone 0800 266 463.