Understanding KiwiSaver

sheep-161630__480 Like any normal woman in her 20’s I love spending money -studying, travelling, shopping (clothes/bags/accessories) and prettying myself up.  BUT one must also know the value of saving and actually SAVE MONEY.  


KiwiSaver is a voluntary, work-based initiative to help you with your long-term saving for retirement.


black-cat-1732366__480  The best time to save for retirement was 10 YEARS AGO.

And the second best time is NOW.

Trust Auntie Taranzna,  you will become older and will rely on your financial-retirement plan.  It will happen, much sooner than you expect or hope to be.


KiwiSaver is designed to be hassle-free

so it’s easy to maintain a regular savings pattern.


Image Credit to http://www.kiwisaver.govt.nz

For most people, KiwiSaver will be work-based. This means you will be provided with information about KiwiSaver from your employer. Consequently, your KiwiSaver contributions will come straight out of your pay (automatically deducted).

Contribution rates are set at 3%, 4% or 8% and you get to choose the rate for your contributions.  Your employer will also make regular contributions plus an annual member tax credit paid by the government.



All of your contributions will be managed by a KiwiSaver Provider (private organization from big name banks, insurance companies and investment managers who can offer you a range of KiwiSaver Schemes) of your choice.  KiwiSaver Schemes simply refers to where you want to invest your money -looking at  returns, risks over time, etc.


sheep-161630__480Quick Recap:

  • You can choose to opt in (join) KiwiSaver.
  • You can choose the contribution rate (3%, 4% or 8%)
  • You can choose your KiwiSaver Provider
  • You can choose how to invest your money i.e. KiwiSaver Schemes

Overall, you have lots of choices!

Overtime, gains or loses of your investment minus any withdrawals/fees/taxes will leave you with your retirement savings.  Because there are risks involve with these investments, KiwiSaver is not guaranteed by the Government.  However, having said that,  all KiwiSaver Schemes are regulated by the Financial Markets Authority and there are additional measures in place to make sure schemes are competitive and members’ best interests are looked after.



  • For those who are self-employed or are not working, you can contact a KiwiSaver Provider directly and discuss regular contribution rate.
  • Early withdrawal of part (or all) of you’re savings is possible if you are buying your first home, moving overseas permanently, suffering significant financial hardship or seriously ill.


Ultimately, to know more about KiwiSaver then check out their official website:





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