KiwiSaver is one of the best ways to grow your wealth for retirement, but with so many options available, it's understandable to have questions. In this blog, we’ll address some of the most commonly searched questions about KiwiSaver, making it easier for you to understand how it works and how to make the most of it.

What is KiwiSaver?

KiwiSaver is a voluntary investment scheme designed to help New Zealanders save for retirement. Managed by private providers and regulated by the government, KiwiSaver allows you to contribute regularly through your salary or make voluntary contributions. The idea is that these funds are invested on your behalf until you reach retirement age (currently 65 in NZ), at which point you can withdraw them to support your retirement.

For more information read our blog ‘What is KiwiSaver’ for the ins and outs of KiwiSaver.

How does KiwiSaver work?

KiwiSaver operates through a combination of contributions from you, your employer, and the government. Here’s how it works:

Employee Contributions: You can choose to contribute 3%, 4%, 6%, 8%, or 10% of your before-tax salary.
Employer Contributions: Your employer must contribute at least 3% of your salary if you’re eligible.
Government Contributions: If you’re eligible, the government contributes up to $521.43 each year, provided you contribute at least $1,042.86 annually.
Investment Growth: Your chosen KiwiSaver provider invests your contributions, and the returns depend on the fund type you’re in (e.g. balanced, growth or high growth).

Unsure if you are in the right KiwiSaver fund? Read our blog on the Best KiwiSaver Funds coming into 2025, or complete our KiwiSaver Discovery Quiz for a personalised KiwiSaver Report.

When did KiwiSaver start?

KiwiSaver was launched on 1 July 2007 by the New Zealand government. This was introduced as a retirement investment scheme for retirees to use as a supplement to the NZ Pension / NZ Superannuation that has been around in some capacity since 1898. For an interesting opinion piece on the history and the concept of retirement, read this blog ‘rethinking retirement’ here.

What is the average KiwiSaver balance?

The number of KiwiSaver members reached 3.33 million as of 31 March 2024, with an average balance of around $33,500 per member.

How much money is invested in KiwiSaver?

As of 31 December 2024, KiwiSaver assets have grown to approximately NZD 121.9 billion, up around $24b for the year.

Who has the biggest KiwiSaver balance?

The largest KiwiSaver provider, based on market share, is ANZ, managing almost NZD 22 billion. However, while ANZ dominates in market share, their returns for the past year have placed them last in every category.

Returns from the last year show that ANZ Balanced Fund ranked last in the balanced category (32/32); In the growth category both ANZ funds were ranked at the very bottom with the ANZ Balanced Growth ranking last in its category (26/26) and ANZ Growth ranking second to last (25/26) and in the aggressive category the ANZ High Growth fund ranked at the very bottom as well, coming 16th out of 16 funds.

So while ANZ manages the highest amount of KiwiSaver dollars, its performance does not compare to most other providers that have delivered better results for their customers.

If you are interested in seeing who were the top performing KiwiSaver funds heading into 2025, read our blog here.

Who is the best KiwiSaver Provider?

The best KiwiSaver providers based on performance over the last 5 years can be found on our report the Best Performing KiwiSaver Funds going into 2025. Every quarter we write a blog on the best performing KiwiSaver funds and providers. Read the latest one here. (Hint: It’s not ANZ)

How to change KiwiSaver provider

Changing your KiwiSaver provider can be straight forward, however you will want to make sure it’s the right change that will land you with a hopefully higher balance come retirement. With a Compound Wealth KiwiSaver Report, you’ll feel certain that your switch is right for you.

The first step is to understand where you are at now, so we can look ahead to where you are going. Complete our quick KiwiSaver Discovery Quiz.
Book in a time to speak to Adam. Once Adam understands your goals for your KiwiSaver, he will prepare a report with a personalised recommendation.
Receive your complementary KiwiSaver comparison report and proceed with our professional recommendations. We’ll handle the entire transfer process with your current provider to your new provider.

How to change KiwiSaver contributions

You can easily adjust your KiwiSaver contributions to better suit your financial situation:

Through Your Employer: Notify your employer you want to change your contribution rate and give them a completed KiwiSaver deduction form. The form you will need to fill out can be located on the IRD website here. This can be done once every three months unless your employer agrees to a more frequent change.
Voluntary Contributions: You can make lump sum contributions directly through your KiwiSaver provider or via Inland Revenue (IRD). If you want to set up a reoccurring contribution, you can arrange for automatic payments to go into your KiwiSaver account via your online banking - check with your Financial adviser or provider for steps on how to set this up.

How to withdraw KiwiSaver at 65

Once you reach retirement age (currently 65 in NZ), you are able to access your KiwiSaver funds:

Eligibility: After turning 65 and completing the minimum five-year membership requirement (if you joined KiwiSaver after 1 July 2019), you can withdraw your savings.
Withdrawal Options: You can choose a lump sum, set up regular withdrawals, or leave your money invested. At Compound Wealth, we often recommend a bucket approach – read our blog here for more information how how this works.

If you’re interested to see how long your KiwiSaver funds will last you in retirement based on your spending habits and retirement goals, take our Retirement Planning Quiz and book a time with Adam to walk you through cashflow modelling and retirement income planning.

Retirement Planning

How to check KiwiSaver balance

You can check your KiwiSaver balance in several ways:

Provider’s Online Portal or App: Most providers offer digital platforms where you can view your balance and transactions.
Annual Statement: Your KiwiSaver provider sends you an annual statement showing your contributions, fees, and balance.
MyIR Account: Log in to your Inland Revenue account to see your contributions.

How to get the government contribution

The government contribution is a significant KiwiSaver benefit. To get the maximum $521.43 you will need to contribute the minimum annual amount of $1,042.86. This is the minimum annual contribution required to qualify for the full amount. Contributions must be made by 30 June each year to qualify for that year’s government contribution.

You may already qualify for the full government contribution if:

You are earning a salary of $34,762 or more and you make employee contributions of at least 3%
You are earning a salary of $26,072 or more and you make employee contributions of at least 4%

However, it is best to check with your provider to ensure your contributions are up to date, especially if you make voluntary payments. If you are a Compound Wealth Client you will get a reminder if your contributions require topping up.

How to grow your KiwiSaver

The most important way to grow your balance is to ensure you are in an appropriate fund with the right provider. Building a balance that is going to last you through retirement is extremely important especially considering that for most New Zealanders, NZ Super will not even cover close to 50% of your weekly spending requirements. That is why it is more important than ever to ensure you are invested in a fund that is going to outpace inflation and grow your KiwiSaver balance for when you need it. For more information on this read our blog on the future of retirement for New Zealanders.

There are several ways you can grow your KiwiSaver balance, for example contributing more or making voluntary contributions, however these can’t really make a lasting impact if you are invested in an underperforming fund.

If you want to ensure you make the most out of your money, and you have a long investment timeframe (10-15yrs) consider investing into a growth or high growth fund. If you want to learn more about why, take a look at this blog that goes into depth on the importance of a higher allocation to equity.

If you have decided that a high growth solution is for you, but want help determining the right provider and fund take our KiwiSaver Quiz and we can present you with a KiwiSaver report that compares several funds and provides you with a bespoke recommendation.

I still want to know more

Got more KiwiSaver questions? Take a look at our FAQ Page here, or reach out to us here if you’d like to speak to us about your retirement strategy and KiwiSaver goals.

Im ready to grow my KiwiSaver

Great! Let’s get started. Complete our KiwiSaver Quiz and we will send you a personalised KiwiSaver recommendation report.

KiwiSaver Quiz

Compound Wealth are based in Mount Maunganui, Tauranga and offer KiwiSaver, Investment & Retirement Financial Advice to clients all over New Zealand.

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