That's a good question. But with all the extra benefits of KiwiSaver, can you really afford not to?
If you're employed
You will need to contribute 2%, 4% or 8% of your gross salary or wages. You can also make additional voluntary contributions directly to your KiwiSaver provider at any time, if your KiwiSaver scheme allows you to do this.
What will your weekly contributions be?
For a gross salary of $52,000, 2% will be $20 per week. Use this table to see how much your contribution would be.
| Contributions per week | |||
|---|---|---|---|
| Annual salary | 2% | 4% | 8% |
| $22,000 | $8.46 | $16.92 | $33.85 |
| $32,000 | $12.31 | $24.62 | $49.23 |
| $42,000 | $16.15 | $32.30 | $64.61 |
| $52,000 | $20.00 | $40.00 | $80.00 |
| $62,000 | $23.85 | $47.69 | $95.38 |
| $72,000 | $27.69 | $55.38 | $110.77 |
| $82,000 | $31.54 | $63.08 | $126.15 |
| $92,000 | $35.38 | $70.77 | $141.54 |
| $102,000 | $39.23 | $78.46 | $156.92 |
| $112,000 | $43.08 | $86.15 | $172.31 |
Alternatively you can work out what your contributions would be using the Sorted Quick KiwiSaver Calculator
Can I skip some payments if it gets too much?
Your contributions will come directly out of your pay, so you can't actually miss the odd one. But 12 months after your first contribution to KiwiSaver you can apply for a contributions holiday (for between three months and five years) if you need it. You can also apply for a contributions holiday (of three months) at any time if you are suffering, or likely to suffer from, financial hardship.
Remember though, if you stop saving, the extra contributions from your employer and the Government will stop too. You can stop a contributions holiday at any time and you can apply for another contributions holiday when one expires.
I am self-employed/not employed. What will my contributions be?
If you are self-employed or not employed, you can agree your contribution level with your KiwiSaver provider and you can stop your contributions at any time. With FirstChoice KiwiSaver, there are currently no minimum contributions levels for either regular payments or lump sum payments. It's worth remembering that if you'd like to get the maximum matching Government contributions, you'll need to save at least $20 a week or $1,042.86 a year.
If you are under 18 and you start working, even if it's a part-time job, KiwiSaver contributions will be deducted from your wages at the rate of 2% of your gross salary or wages, unless you choose to contribute at the rate of 4% or 8% or take a contributions holiday.
Disclaimer
A copy of the Investment Statement for the FirstChoice KiwiSaver Scheme ("FirstChoice KiwiSaver") is available here or by calling 0800 1ST CHOICE (0800 178 246).
