KiwiSaver is a voluntary, work-based savings initiative implemented by the New Zealand Government with a range of membership benefits. The defined contribution scheme was established in 2006 and has three key features to become a member:
- individuals must be under the standard qualifying age for New Zealand superannuation (currently 65 years), and
- live in New Zealand (some exceptions apply), and
- be a New Zealand citizen or entitled to permanent residence in New Zealand.
There is no guarantee, so the choice of scheme is at the member's own risk. A member can switch schemes at any time but only be a member of one scheme at any time.
FundSource produce a quarterly KiwiSaver report enabling advisers and fund managers to stay aware of the dynamic KiwiSaver market.
KiwiSaver Investment Statements can be downloaded here.
- Compulsory minimum contribution of 3% for both employee and employer of gross salary / wages
- If aged 18 years or older then the government will contribute 50 cents for each dollar that the member contributes to a maximum of $521.43 each year
- After three years in the scheme, a member may draw down their contributions towards a deposit for their first house (conditions apply)
Currently, there are nine default providers chosen by the government from around 25 KiwiSaver scheme providers. This follows the first review of default providers in March 2014 when four more were named effective 1 July 2014. A number of providers have already exited from the KiwiSaver scheme, since the scheme was introduced in July 2007. Each government from 2007 has brought changes to the features and terms of the scheme. Once provisionally enrolled a member has three months to opt-out.
Default schemes are available to members who have been automatically enrolled in the Default KiwiSaver Scheme by the Inland Revenue (because they have not opted-out). Only those individuals who have been automatically enrolled through Inland Revenue can opt out of the Scheme.
- AMP Services (NZ) Limited
- ANZ Investments
- ASB Group Investments Limited
- Grosvenor Financial Services
- Kiwi Wealth Limited
- Mercer (NZ) Limited
- Fisher Funds Limited
For more information about KiwiSaver check out some of the links
- KiwiSelect - a KiwiSaver comparison site
- Official Inland Revenue KiwiSaver Site
- Financial Markets Authority - who regulates KiwiSaver
- Check out Sorted's KiwiSaver calculator