Summary
KiwiSaver is New Zealand’s workplace retirement savings scheme — you contribute a percentage of your before-tax salary, your employer adds at least the same percentage on top, and the government contributes up to NZD $260.72 per year; you are automatically enrolled when you start a new job but can opt out within the first eight weeks
The default contribution rate rose to 3.5% from 1 April 2026 — both you and your employer must now contribute at least 3.5% of your gross salary; you can contribute more (4%, 6%, 8% or 10%) but not less without applying to IRD for a temporary reduction
Temporary visa holders are generally not eligible for KiwiSaver — only New Zealand citizens, permanent residents and some resident visa holders qualify; if you are on a temporary work visa you may be able to opt out and reclaim contributions on departure
When you start a new job in New Zealand, your employer will ask you about KiwiSaver. Most new employees are automatically enrolled — which means money starts going into a retirement savings account before many migrants have had a chance to understand what it is.
KiwiSaver is not a tax. It is a savings scheme — your money, invested for your future. With employer contributions and a government top-up, it is one of the most compelling financial benefits of working in New Zealand. This guide explains how it works.
What is KiwiSaver New Zealand?
KiwiSaver is New Zealand’s voluntary workplace retirement savings scheme, administered by Inland Revenue (IRD). It was launched in 2007 to help New Zealanders build long-term savings for retirement or a first home. As of 2026, over 3 million New Zealanders are members.
The three sources of money in your KiwiSaver account:
- Your contributions — a percentage of your before-tax salary, deducted by your employer each payday
- Employer contributions — your employer must contribute at least the same rate on top of your salary
- Government Member Tax Credit — up to NZD $260.72 per year for eligible members
Unlike Australia’s superannuation, KiwiSaver is voluntary — employees can opt out within the first eight weeks of a new job. Once you are past that opt-out window, you cannot withdraw or stop contributing while you are still working in New Zealand (except in specific hardship circumstances).
Contribution rates — what changed on 1 April 2026
From 1 April 2026, the minimum KiwiSaver contribution rate increased from 3% to 3.5% for both employees and employers. This was announced in the 2025 Budget.
Your options as an employee:
| Rate | Notes |
|---|---|
| 3.5% | New default from 1 April 2026 |
| 4% | Available — tell your employer |
| 6% | Available — tell your employer |
| 8% | Available — tell your employer |
| 10% | Available — tell your employer |
| 3% | Available only with a temporary rate reduction approved by IRD |
If you want to stay at 3%, you must apply to IRD for a temporary rate reduction. Your employer can also choose to contribute only 3% if you are on the reduced rate.
Your employer’s contribution: Your employer must contribute at least the same rate as you (minimum 3.5%) on top of your salary — not deducted from it. This is free money added to your KiwiSaver from day one.
The government Member Tax Credit
The government contributes up to NZD $260.72 per year to your KiwiSaver account — provided you contribute at least NZD $1,042.86 annually (approximately NZD $20 per week) from your own money.
This is a 25-cent return on every dollar you personally contribute, up to the maximum. If you contribute less than NZD $1,042.86, the government contribution is proportionally reduced. If you contribute nothing, you receive nothing.
Eligibility: You must be aged 16-64, living mainly in New Zealand, with an income of NZD $180,000 or less for the year. The government contribution year runs 1 July to 30 June.
For migrants: If you are eligible for KiwiSaver, claiming the full government contribution is one of the easiest and most valuable financial moves available to you in New Zealand. Make sure you contribute at least NZD $1,042.86 per year from your own salary to receive the full NZD $260.72 from the government.
Who is eligible for KiwiSaver?
Eligible:
- New Zealand citizens
- Permanent residents (all subclasses)
- Holders of a resident visa who normally live in New Zealand
Not eligible:
- Temporary work visa holders
- Student visa holders
- Visitor visa holders
- Working holiday makers
Why this matters for migrants: If you are on a temporary visa — including most skilled temporary work visas — you are generally not eligible to join KiwiSaver. If you are auto-enrolled by an employer who does not check your visa status, you have the right to opt out. Seek advice from a licensed financial adviser if you are unsure.
Transitional residents: New migrants to New Zealand who become tax residents may qualify for a four-year transitional resident tax exemption on foreign income. This does not affect KiwiSaver eligibility but is worth being aware of for broader tax planning.
What KiwiSaver is used for
KiwiSaver funds are locked until you reach New Zealand Superannuation age (currently 65) — with two exceptions:
First home withdrawal
If you have been a KiwiSaver member for at least three years and are buying your first home, you can withdraw most of your KiwiSaver balance (excluding the government contributions). This is one of the most commonly used features in New Zealand — KiwiSaver functions as a first home deposit savings vehicle for many migrants who plan to stay permanently.
Significant financial hardship
You may apply to your KiwiSaver provider to withdraw funds early if you are in serious financial hardship — for example, you cannot meet mortgage payments and are at risk of losing your home, or you cannot meet basic living costs. The criteria are strict.
Choosing a KiwiSaver provider
When you are auto-enrolled or when you join, you need to choose a KiwiSaver provider. If you do not choose one, IRD will assign you to one of the government-approved default providers.
What to look for:
- Fund type: The most important decision. Growth or aggressive funds suit members under 50 who want maximum long-term returns. Conservative or cash funds suit members approaching 65 or planning a first home withdrawal soon.
- Fees: Annual fees of 1% vs 0.25% can cost over NZD $100,000 in lost returns over 30 years on a typical balance. Low-fee index funds (Simplicity, Kernel) consistently outperform high-fee active funds on a net-of-fees basis.
- Performance: Focus on 5-year and 10-year returns, not short-term results.
- Ethical options: Several NZ providers offer certified responsible investment funds.
The Sorted Smart Investor tool at sorted.org.nz is a free government-backed tool to compare providers by fees, returns and fund type. Use it before choosing.
Major KiwiSaver providers in New Zealand
New Zealand has over 20 KiwiSaver providers. These are the most consistently recommended in 2026.
Milford Asset Management
Actively managed funds with a strong long-term track record — Milford Active Growth has consistently outperformed index funds on a net-return basis. Winner of Canstar KiwiSaver Provider of the Year six consecutive years (2020-2025) and Consumer NZ People’s Choice multiple times. Higher fees (~1.20%) are generally justified by returns for long-term growth investors. → milfordasset.com
Simplicity
New Zealand’s leading not-for-profit KiwiSaver provider — owned by a charitable trust, profits returned to charity. Passive index funds tracking global markets. Fees from 0.25% — among the lowest in NZ. No financial advisers, no complexity. Excellent choice for migrants who want low fees and simplicity. → simplicity.kiwi
Generate KiwiSaver
New Zealand-owned and consistently ranked the highest for member satisfaction (80% overall satisfaction in Consumer NZ 2025). Active management with a focus on responsible investing — signatory to UN Principles for Responsible Investment since 2018. Strong long-term performance. Over 180,000 members. → generatekiwisaver.co.nz
Fisher Funds
One of New Zealand’s largest and most established active KiwiSaver managers. Strong 10-year returns across most fund types. Well-known for stock-picking and consistent performance. Fees typically around 1.00-1.30%. → fisherfunds.co.nz
Kernel Wealth
Low-cost index funds built on a modern digital platform. Fees from approximately 0.25% — among the cheapest in New Zealand. Popular with younger, digitally engaged migrants who want index investing without complexity. Also offers direct shares within KiwiSaver for some options. → kernelwealth.co.nz
Booster
New Zealand-owned, Wellington-based, operating since 1998. First KiwiSaver provider to offer independently certified socially responsible funds. Winner of Canstar Outstanding Value and Responsible Investment Association Australasia (RIAA) accreditation. Small monthly member fee of NZD $3, annual fund charges from 0.35%. → booster.co.nz
InvestNow
Platform-based KiwiSaver with ultra-low fees on index options — including a US 500 fund at 0.03% for eligible members. Good for cost-focused migrants who understand index investing and want maximum fee efficiency. → investnow.co.nz
Pathfinder
New Zealand’s leading ethical KiwiSaver provider — independently certified by the RIAA, focused on environmental and social criteria. Good for migrants from the UK, Europe or Australia who prioritise responsible investing. → path.co.nz
ANZ, ASB, BNZ, Westpac, Kiwibank
All five major New Zealand banks offer KiwiSaver. Convenient if you want everything in one place — your bank account and KiwiSaver with the same institution. Generally higher fees and more average long-term performance than specialist providers. Not recommended as a first choice on performance and fees alone, but fine for members who value simplicity.
For different needs:
| Situation | Recommended provider |
|---|---|
| Best long-term returns (active) | Milford or Generate |
| Lowest fees (passive index) | Simplicity, Kernel or InvestNow |
| Ethical / responsible investing | Pathfinder or Booster |
| NZ-focused investing | Booster or Generate |
| Everything in one place | Your existing NZ bank |
Super in plain numbers: what to expect
For a migrant earning NZD $75,000 per year:
| Amount | |
|---|---|
| Your contribution at 3.5% | NZD $2,625/year |
| Employer contribution at 3.5% (on top) | NZD $2,625/year |
| Government Member Tax Credit (if eligible) | NZD $260.72/year |
| Total annual inflow | ~NZD $5,771/year |
After three years, assuming 7% average annual returns and modest fees, a member could accumulate approximately NZD $19,000-$21,000 — including the employer contributions and government top-up they received at no extra cost to themselves.
KiwiSaver and your first home
If you are planning to buy your first home in New Zealand, KiwiSaver is one of the most powerful tools available:
- After three years of membership, you can withdraw most of your balance (excluding government contributions) to use as a deposit
- The First Home Grant (previously available for KiwiSaver members) — check current eligibility and availability at hnzc.co.nz as terms and availability change
FAQ’s (frequently asked questions)
Is KiwiSaver compulsory in New Zealand?
No — it is voluntary. However, employees are automatically enrolled when starting a new job and must actively opt out within the first eight weeks to leave. Once past the opt-out window, you cannot withdraw or stop contributing while working in New Zealand.
Can migrants join KiwiSaver?
Only if you hold a resident visa or permanent residence and normally live in New Zealand. Temporary visa holders, working holiday makers and student visa holders are generally not eligible.
What is the KiwiSaver contribution rate in 2026?
The default rate is 3.5% for both employees and employers from 1 April 2026, up from 3%. You can contribute 4%, 6%, 8% or 10%. You can apply to IRD to temporarily remain at 3%.
Can I access my KiwiSaver early?
Only in limited circumstances: buying your first home (after three years of membership), significant financial hardship, serious illness, or permanent emigration. You cannot withdraw for general purposes while working in New Zealand.
What happens to my KiwiSaver if I move to Australia?
You can transfer your KiwiSaver balance to an eligible Australian superannuation fund under the Trans-Tasman portability scheme. You cannot take it as cash.
How do I choose a KiwiSaver provider?
Use the Sorted Smart Investor tool at sorted.org.nz. Compare on fund type (growth for long-term investing), fees (lower is almost always better over time) and 5-10 year performance. Specialist providers like Milford, Simplicity and Generate consistently outperform bank-based funds on both fees and returns.
What is the government Member Tax Credit?
Up to NZD $260.72 per year contributed by the government to eligible KiwiSaver members who contribute at least NZD $1,042.86 of their own money. Claim it by making sure you are contributing at least NZD $20 per week from your own salary.
Sending money from New Zealand
Once your KiwiSaver is set up and your salary is coming in, OrbitRemit supports fast, affordable transfers from New Zealand to 50+ countries.
- NZD to INR: NZD $4 flat fee (fee-free above NZD $10,000)
- NZD to PHP: NZD $4 GCash and mobile wallets; NZD $6 bank deposit
- NZD to NPR: NZD $4 flat fee
- NZD to GBP: $0 fee-free
- NZD to AUD: NZD $4 flat fee
- Over 85% of transfers to Asia-Pacific destinations arrive within 2 hours
- Supervised by the DIA in New Zealand (FSP7721)
- Rated Excellent on Trustpilot from over 34,000 reviews
This guide is for general information only and does not constitute financial or tax advice. KiwiSaver rules and contribution rates are subject to change — always verify current requirements at ird.govt.nz or consult a licensed financial adviser for your specific situation. Last updated July 2026.
Sources: Inland Revenue NZ — How KiwiSaver works (ird.govt.nz) | Booster — KiwiSaver Summary of Key Changes from 2026 | IRD — KiwiSaver Contribution Rates Changes from 1 April 2026 | themigratehub.com — KiwiSaver for Migrants 2026 | lifetimes.co.nz — Best KiwiSaver Providers 2026 | MoneyHub NZ — Best Performing KiwiSaver Funds | Smiths Insurance — Low-Fee KiwiSaver Providers NZ 2026 | sorted.org.nz
