What is KiwiSaver, and why are members missing out on money?

Family of piggy banks

What is KiwiSaver?

KiwiSaver is a voluntary long-term savings system in New Zealand introduced July 2007. The primary purpose of KiwiSaver is to help New Zealanders save for their retirement, however members can also use KiwiSaver to contribute toward buying their first home.

As it stands, 86% of all New Zealanders under the age of 64 are members of KiwiSaver and making the most of the initiative’s main benefits:

Kiwi saving in it's piggy bank

KiwiSaver Benefits

Piggy bank with a coin

Member Tax Credit

An annual KiwiSaver Bonus from the Government to your KiwiSaver account for eligible contributing members.

Piggy bank with a coin

HomeStart Grant

Members who have been contributing to KiwiSaver for 3+ years may be entitled to a grant towards their first home.

Piggy bank with a coin

Savings withdrawal for first home

KiwiSaver members may be able to withdraw some KiwiSaver savings towards buying a first home.

Piggy bank with a coin

Employer contributions

For eligible members, your employer will also contribute an amount equal to 3% of your pay to your KiwiSaver savings.

KiwiSaver Providers

Although there are amazing perks from being a KiwiSaver member, if you haven’t chosen your fund, you could be missing out on money.

Currently, 1 in 5 members have their savings in a default lower-risk, lower-return KiwSaver fund, which may result in missing out on serious cash in the long term.

Kiwis shaking out their piggy bank

Not all Funds are the Same

One of the great things about KiwiSaver is that you have choices. However, it's important to understand that not all KiwiSaver funds are the same. Some are lower risk, and some are higher. The returns you can get from KiwiSaver are often related to the risk that you are willing to take.

BetterSaver has been designed to demystify KiwiSaver so that you can understand all the different fund options available. We’ll guide you through each fund type and help you choose the KiwiSaver fund for you.

Which Fund Is Right For Me?
Lots of piggy banks of different shapes and sizes

Are you currently in a default fund?

Being in a lower risk ‘default fund’ may not always be the best option. It is important to take into consideration your life stage and tolerance for risk so that you make the most of your KiwiSaver investment.

For example, if you are closer to retirement you may want to choose a ‘low risk’ or ‘conservative’ fund. However, if you are investing long term, your investment can likely handle the ups and downs of the market, therefore a higher-risk fund may be the better option.

Piggy bank isn't sure

Switching made easy-as

BetterSaver provides you with the information and confidence to make a more informed decision when choosing to switch funds.

With all the KiwiSaver providers in one place, it’s a lot easier to compare against what’s most important to you - from fees and returns to how socially responsible the fund provider is with their investments.

Find a Fund That Suits You
Transferring coins from one piggy bank to another