The government introduced KiwiSaver because we're not good at saving for ourselves. According to OECD figures the average NZ household spends 7% a year more than it earns.
A The exact amount of the tax credit will depend on how much you're paying into your KiwiSaver scheme - the government will match your contributions up to the $20 a week limit.
B From April 1 2009, your employer has to contribute 2% of your before tax pay.
Quick guides
What is KiwiSaver?
KiwiSaver is a voluntary, work-based savings scheme aimed at helping New Zealanders save for retirement.
You don't have to join. If you do, you'll have to put either 2%, 4% or 8% of your before-tax pay into a KiwiSaver savings scheme and leave it there until you turn 65. (There are a few exceptions. See withdrawing your savings.)
To help you save, the government will kick-start your savings with a $1000 tax-free lump sum and give you a tax creditA of up to $20 a week ($1040 a year).
With some exceptions, your employer also has to contribute to your savingsB. Some employers are choosing to contribute more than they have to.
You may be able to use some of your KiwiSaver contributions to pay off your mortgage, and from 2010 you may be eligible for a $5000 deposit on your first home. See KiwiSaver and home buying to find out more.
If you join KiwiSaver, you can choose which KiwiSaver provider to save with and what type of scheme to invest in.
Important
Like you, we can't predict the future - which means we can't guarantee the performance of any savings scheme. Nor do we endorse any specific KiwiSaver provider or scheme. ConsumerSaver is a good starting point - but, before you commit, we strongly suggest you seek independent financial advice. See our full disclaimer.
