KiwiSaver pension New Zealand

Last updated: March 5, 2026

Understanding KiwiSaver: New Zealand’s Retirement Savings Scheme

If you are moving to New Zealand from the Netherlands, understanding KiwiSaver is essential for your long-term financial planning. KiwiSaver is a government-supported, voluntary savings scheme designed to help residents save for retirement. This guide explains how KiwiSaver works, the costs involved, how to join, and practical tips for Dutch emigrants.

What is KiwiSaver?

KiwiSaver is a retirement savings scheme introduced by the New Zealand government in 2007. It encourages residents aged 18 to 65 to save for their retirement, home purchase, or other financial goals. Contributions are deducted automatically from your salary, with additional contributions possible.

Key features:

Contributions from employees, employers, and government.
Multiple fund options based on risk preference.
Early withdrawal allowed for first-home purchase, serious illness, or permanent emigration.
Savings locked in until you turn 65, except for specific circumstances.

Who Must Join KiwiSaver?

If you are a new employee aged 18 to 65 and eligible to work in New Zealand, your employer must automatically enroll you in KiwiSaver unless you opt out within 2-8 weeks.
If you are self-employed, unemployed, or not working, joining KiwiSaver is voluntary.
Permanent residents and visa holders with a work visa lasting more than 2 years are eligible to join.

How to Join KiwiSaver

Choose a KiwiSaver provider: There are many providers in New Zealand (banks, investment firms). Compare fees and fund types on the Sorted.org.nz website.
Complete an enrollment form: Provide your IRD (tax) number. If you don’t have one, apply via Inland Revenue at ird.govt.nz.
Opt out if not interested: If automatically enrolled, you have 2-8 weeks to opt out.
Start contributing: Contributions are deducted from your salary (if employed).

Contributions and Costs

Employee Contributions

Minimum contribution rates are 3%, 4%, 6%, 8%, or 10% of your gross salary.
You can change your contribution rate any time.

Employer Contributions

Employers must contribute a minimum of 3% of your gross salary if you are enrolled.

Government Contributions

The government contributes up to NZD 521.43 per year (NZD 10.42 per week) as a member tax credit, provided you contribute at least NZD 1042.86 annually.

Fees

KiwiSaver providers charge management fees, which vary but typically range from 0.25% to 1.0% of your account balance annually.
Some providers also charge administration fees (~NZD 30-40 per year).
Always check fee disclosures on provider websites or Sorted.org.nz.

Accessing Your KiwiSaver Funds

Retirement: You can withdraw your KiwiSaver savings when you turn 65.
First-home purchase: After contributing for at least 3 years, you can apply to withdraw most of your KiwiSaver funds to buy your first home.
Serious illness: Early withdrawal may be allowed on medical grounds.
Permanent emigration: If you emigrate permanently (including back to the Netherlands), you can apply to withdraw your KiwiSaver funds after 1 year of absence from New Zealand.

Practical Tips for Dutch Emigrants

Obtain an IRD number early: You need this for KiwiSaver and tax purposes. Apply online via ird.govt.nz.
Choose a low-fee provider initially: Especially if your balance is small, fees eat into growth.
Consider your contribution rate carefully: The default is 3%, but increasing your rate can improve your retirement savings.
Understand tax implications: KiwiSaver contributions reduce your taxable income. However, earnings in KiwiSaver funds are taxed at 28% in a PIR (Prescribed Investor Rate).
Keep your KiwiSaver account active: Even if unemployed or self-employed, make voluntary contributions to maximize government contributions.
Plan for permanent emigration: If you plan to return to the Netherlands or move elsewhere, know that you can withdraw your KiwiSaver funds after 1 year outside NZ, but this may have tax consequences.

How to Apply for KiwiSaver Withdrawal on Emigration

Leave New Zealand permanently.
Wait 12 months after your departure.
Submit an application to your KiwiSaver provider with proof of permanent residence in another country.
Funds will be paid out less any outstanding taxes or fees.

More details are available on the official Inland Revenue site: ird.govt.nz/kiwisaver.

Common Mistakes

Not applying for an IRD number promptly: Without it, you cannot join KiwiSaver or work legally.
Ignoring the opt-out period: Being automatically enrolled but not opting out if you don’t want to participate can cause confusion.
Choosing high-fee providers: High fees significantly reduce long-term savings.
Failing to update contribution rates: Many people stay at the default 3%, which may be insufficient for retirement.
Assuming KiwiSaver funds are accessible anytime: Funds are locked in until 65 except for specific reasons.
Not understanding the permanent emigration rules: Trying to withdraw funds immediately on leaving NZ is not allowed.
Not informing your KiwiSaver provider about your emigration: This delays withdrawal and complicates tax matters.

For the most accurate and updated information, always consult:

Understanding KiwiSaver will help you make informed decisions about your retirement savings as you settle in New Zealand.