KiwiSaver
KiwiSaver is a voluntary work-based savings initiative designed to help New Zealanders save for retirement. If you are enrolled (most employees are automatically enrolled), you contribute a percentage of your gross salary (3%, 4%, 6%, 8%, or 10%) and your employer contributes at least 3% on top.
Your KiwiSaver funds are managed by a provider you choose, and invested in a fund type ranging from conservative (lower risk, lower expected return) to aggressive (higher risk, higher expected return). The right fund type depends on your age, risk tolerance, and how far away retirement is.
You generally cannot access your KiwiSaver balance until you reach age 65, with a few exceptions: purchasing your first home (if you have contributed for at least 3 years), significant financial hardship, serious illness, or permanent emigration.
KiwiSaver contributions reduce your take-home pay but build a retirement nest egg. A 3% contribution on a $70,000 salary is $2,100 per year. Combined with the employer match, that is $4,200 per year going into your retirement savings, before investment returns.
See how this affects your numbers
Run the mortgage calculator to see how kiwisaver plays out in your specific situation.