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For every dollar you invest in your KiwiSaver account between 1 July and 30 June, the Government will give you another 25 cents, up to a maximum of $260.72. To get the maximum amount you need to invest $1,042.86 to your KiwiSaver account. 

Don’t worry if you can’t make the full $1042.86. You will still receive 25c for every $1 you have contributed.

*Note. Previously the Government contribution was $521.43. The new amount of $260.72 came into effect on 1 July 2025, for the payment run of July/August 2026.

To receive the maximum contribution of $260.72 in July/August, you must:

• Meet the minimum investment requirement of
  $1,042.86
• Have been a KiwiSaver member since 1 July of the
  previous year
• Been mainly living in New Zealand for that year
• Be aged between 16 and 65 years

It’s your money! You want to earn the best return you can so when the time comes you have more to spend.

The easiest way is to log into your MyIR on the IRD website. Your provider will be shown there. Alternatively, call the IRD on their 0800 number.

Ian at Compound Effect Financial will take care of this for you. After finding the most suitable provider and fund type for you, he will do all the paperwork for you.

No, your employer pays your KiwiSaver contributions to the IRD, who then forward them to your KiwiSaver provider. Your boss doesn’t need to know who your provider is.

There are two ways to change your KiwiSaver contribution rate:

Change your KiwiSaver contribution rate with your employer

You can change your contribution rate by filling out a KS2 form (KiwiSaver Deduction Form), and submitting it to your employer.

For help filling in the KS2 form visit the IRD website.

Change your contribution rate on the IRD website

1. Log into myIR
2. Under their main summary page on KiwiSaver member, select ‘More’
3. Under the ‘Manage account’, select ‘Change KiwiSaver contribution rate’
4. Note: If you have multiple employers, make sure to select each of them and update the new contribution rate.
5. Select ‘OK’ and follow the confirmation steps.

What happens next?

After your request is submitted, the IRD will let your selected employers know that your KiwiSaver contribution rate needs changing.

The rate in your myIR account will be updated when your employer informs the IRD that they are using your new contribution rate.

Note: You can only change your contribution rate once every 92 days (unless your employer agrees to let you change more often).

Employers are required to pay 3% (3.5% form 1 April 2026) on top of your pay into your KiwiSaver, provided you are contributing at least 3% out of your pay. Employers can pay more if you can negotiate this with them, but there is no legal obligation to do so.

Yes – if you’re self-employed, you should still care about KiwiSaver. It can be a really smart way to build long-term savings, even though you’re not automatically enrolled like employees are. Firstly, the government will give you up to $261 per year. To get the full amount, you only need to contribute $1,042.86 in a year – that’s about $20 a week. That’s a free $261 every year, just for saving a little. It also diversifies your assets away from just your own business. In the worst-case scenario, if your business fails and you are bankrupt, your KiwiSaver is left alone and not taken from you.

If you move to Australia, your KiwiSaver stays in your account unless you transfer it to an Australian super fund. If you move permanently to any other country, you can apply to withdraw your KiwiSaver savings after one year.

Your money goes into your estate along with your other assets, which is given to whoever is specified in your will. If you don’t have a will there is a formula used to distribute it to your remaining family members.

Yes, if you have moved permanently to New Zealand, you can transfer your Australian Superannuation to KiwiSaver. This simplifies managing your retirement savings and can reduce fees. Funds transferred from Australia retain certain restrictions, such as being ineligible for first-home withdrawals. I can guide you through this process.

Income assets include cash and bonds; they offer lower risk/lower return and are good for when your time frame until withdrawal is short. Growth assets include the stock market and commercial property; these are higher risk/higher return and better suited for longer time frames.

Compound interest is when you earn interest not just on your original money (called the principal), but also on the interest that money has already earned. Over time, this creates a snowball effect – your savings grow faster because you’re earning interest on a bigger and bigger amount.

Simple example:

Let’s say you invest $1,000 and it earns 5% interest per year:

• Year 1: You earn $50 interest → Total = $1,050
• Year 2: You earn 5% of $1,050 = $52.50 → Total = $1,102.50
• Year 3: You earn 5% of $1,102.50 = $55.13 → Total = $1,157.63

…and it keeps growing faster each year!

Because KiwiSaver is a long-term investment, compound interest works in your favour. The earlier you start contributing, the more time your money has to grow. Even small, regular contributions can turn into a big nest egg over time thanks to compounding. The longer your money stays invested, the more powerful compound interest becomes – so starting early and staying consistent is key!

Kids have the biggest advantage as they have the most time to receive the benefit of compounding on their Investments.

PIR stands for Prescribed Investor Rate. It’s the tax rate that’s used to calculate how much tax you pay on the investment income earned by your KiwiSaver fund. You select this yourself with your provider and you want to get it correct. We will help you determine this.

A default fund is assigned to you if you’re enrolled in KiwiSaver but haven’t chosen a provider or fund type. When you’re automatically enrolled (like when starting a new job), and you don’t pick your own KiwiSaver provider within 8 weeks, the government assigns you to one of several government-appointed default providers. These are temporary parking spaces until you make a choice of which provider you want to work with.

All providers offer several types of funds, suited to different stages of your life. The type of fund you choose will set the level of exposure you want to various assets including bonds, cash, the stock market & commercial property. Names of funds are standardised and include defensive, conservative, moderate, balanced, growth, aggressive. You can split your money into different types of funds offered by a provider.

Your fund provider is the company you choose to invest your money for you. Their job is to make smart investment decisions and make it grow as much as possible. You can have only one KiwiSaver Provider. Investing is a difficult skill, and some providers are better at it than others, so choosing wisely is important.