Making the most of your KiwiSaver opportunity
The amount you save now can make a big difference to your future KiwiSaver balance.
Contribution rate
For employee contributions coming directly from your salary or wages, the minimum contribution is 3%, however you can choose to increase this to 4% 6%, 8% or 10%.
To change your contribution rate you will need to complete a KS2 form and give this to your employer.
Below is an example of possible future balances at 65, in real terms (i.e. today's money), for a 30 year old, on a current salary of $50,000 and contributing at the different contribution rates. Invested in a balanced fund, with an assumed nominal rate of return of 3.5% (after annual fund charges and tax at the highest Prescribed Investor Rate of 28%). Member, administration and other fees are not taken into account. Your actual balance may differ.
Fund choice
Defensive, Conservative, Balanced, Growth… Not sure which investment profile is right for you?
The Summer KiwiSaver scheme Investment Profile tool can help determine which fund or combination of funds in the Summer KiwiSaver scheme might be right for you.
Below is an example of possible future balances at 65, in real terms (i.e. today's money), for a 30 year old, on a current salary of $50,000, with a 3% employee contribution. Invested in a conservative fund, with an assumed nominal rate of return of 2.5% or a growth fund with an assumed rate of return of 4.5%. Assumed rate of return is after annual fund charges and tax at the highest Prescribed Investor Rate of 28%). Member, administration and other fees are not taken into account. Your actual balance may differ.
These balances are calculated using the assumed rate of returns outlined in the Financial Markets Conduct Amendment Regulation 2019, Schedule 7A – actual returns will differ. While Growth funds generally have higher expected returns than Conservative funds, they are also higher risk (that is, they are likely to have more ups and down in value). For more information on the Summer KiwiSaver scheme funds read the latest quarterly fund update and the product disclosure statement.
Voluntary contributions
You can also put additional money into your KiwiSaver account at any time and there are a number of ways to do so by making voluntary contributions. Read more here.
The examples on this page are illustrative only to help you understand the possible impacts of decisions around contribution rate and fund choice. Your actual balance may differ. These examples are not a substitute for personalised financial advice. We recommend you take financial advice before making investment decisions. We do not make any representation or warranty (express or implied) that this web page is accurate, complete, or current and to the maximum extent permitted by law disclaim any liability for loss which may be incurred by any person relying on this web page. Actual returns will differ.
All examples are calculated assuming:
- An employer contribution rate of 3%
- A current balance of $0
- Assumed rate of rate of wage and salary inflation of 3.5%
- Assumed rate of inflation of 2% applied
- No other investments or withdrawals between 30 and 65
Refer to the Financial Markets Authority for the full set of assumptions at www.fma.govt.nz/kiwisaver-projections/.