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.
The Government announced in the 2011 Budget that the minimum employee contribution rate and the default contribution rate will increase from 2% to 3% of gross salary or wages with effect from 1 April 2013.
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.
The Government announced in the 2011 Budget that the minimum employee contribution rate and the default contribution rate will increase from 2% to 3% of gross salary or wages with effect from 1 April 2013.
| 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 the FirstChoice KiwiSaver Scheme, 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 member tax credit, you'll need to save at least $20 a week or $1,042.86 a year.
If you are self-employed and pay yourself a salary or wages (salary or wages is as defined in the KiwiSaver Act and includes most employment-related income that is subject to the PAYE tax regime) you may be treated as an employee and employer for the purposes of KiwiSaver contributions.
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.
The Government announced in the 2011 Budget that the minimum employee contribution rate and the default contribution rate will increase from 2% to 3% of gross salary or wages with effect from 1 April 2013.
Disclaimer
The FirstChoice KiwiSaver Scheme is provided by ASB Group Investments Limited.
The information contained in this website is for general informational purposes and is designed for use by New Zealand Residents only. None of the Crown, the Trustee, the Manager, ASB Bank Limited and its subsidiaries (the Banking Group), the Commonwealth Bank of Australia, or any other company in the Commonwealth Bank of Australia Group, or any of their Board members or directors (as the case may be), nor any other person or party, guarantees the securities offered in this website or the performance of those securities (including any of the investments or returns made in respect of the securities).
A copy of the Investment Statement for the FirstChoice KiwiSaver Scheme is available here or by calling 0800 1ST CHOICE (0800 178 246).
