How does KiwiSaver work?
KiwiSaver is a voluntary, work-based savings scheme that helps you build money for retirement or a first home. You contribute a slice of your pay, your employer adds to it, and the government chips in too. Your money sits in a fund run by a provider you choose, invested until you withdraw it at 65 or for a first home.
Your contributions, and the top-ups
If you are employed, you contribute a percentage of your before-tax pay, with a default of 3.5% since 1 April 2026, rising to 4% from 1 April 2028. You can also choose 4%, 6%, 8% or 10%. Your employer contributes on top, and the government adds up to $260.72 a year if you put in at least $1,042.86 between 1 July and 30 June (Inland Revenue). The detail is in KiwiSaver contribution rates explained and the government contribution guide.
Choosing a fund
Your provider invests your money in a fund, from defensive through to aggressive. The right one matches how long until you need the money. See how to choose the right KiwiSaver fund.
Watch the fees
Every fund charges a fee, averaging around 0.71% of your balance a year across the market (FMA KiwiSaver Annual Report, 2025), and small differences compound. Read KiwiSaver fees explained.
Getting your money out
You can generally withdraw your KiwiSaver from age 65, or earlier to buy a first home or in cases of significant hardship.
Getting started or switching
You join through a provider or your employer. If you are already in and your fund or fees are not right, see how to switch KiwiSaver providers.
Compare KiwiSaver funds and fees on Kāhu.
Frequently asked questions
How does KiwiSaver work in simple terms?
You contribute from your pay, your employer and the government add to it, and it is invested in a fund until you withdraw it at 65 or for a first home.
How much goes into my KiwiSaver?
Your own contribution (default 3.5% of pay), your employer’s contribution, and up to $260.72 a year from the government if you contribute enough.
When can I take my KiwiSaver out?
Generally from age 65, or earlier for a first home or significant financial hardship.
Kāhu provides general information, not personalised financial advice. Kāhu is a KiwiSaver comparison and switching platform operated by Financial Advice NZ Limited, a licensed Financial Advice Provider (FSP1009051). The figures here are general and current as at June 2026. For advice on your situation, speak to a licensed financial adviser.