KiwiSaver for Migrants: Complete Guide to NZ's Retirement Savings Scheme (2026)

When you start working in New Zealand, you'll encounter KiwiSaver—a retirement savings scheme that many migrants find confusing at first. Unlike retirement systems in other countries, KiwiSaver is voluntary but comes with significant financial benefits that make it worth understanding from day one.

This guide explains everything migrants need to know about KiwiSaver, from how it works and contribution rates to withdrawal rules and provider selection. Whether you're about to start your first job in New Zealand or have been working here for a while, understanding KiwiSaver helps you make informed decisions about your retirement savings.

What Is KiwiSaver?

KiwiSaver is a voluntary, work-based savings initiative designed to help New Zealanders save for retirement. Launched in 2007, the scheme pools contributions from you, your employer, and the government into an investment fund that grows over time.

Here's what makes KiwiSaver unique: it's not a pension or social security system. Instead, it's a personal retirement savings account where your contributions are invested in various assets like shares, bonds, and property. The money belongs to you, and while there are restrictions on when you can withdraw it, these funds are yours for life.

For migrants, KiwiSaver represents an opportunity to build retirement savings in New Zealand while receiving employer contributions and potential government support—benefits that many find attractive compared to retirement systems in their home countries.

Who Can Join KiwiSaver?

KiwiSaver eligibility for migrants is straightforward but has specific requirements:

Eligible to join: You can join KiwiSaver if you're a New Zealand citizen or entitled to live in New Zealand indefinitely. This includes permanent residents, those with resident visas, and people on most work visas. You must also be under 65 years old when you join and living or normally living in New Zealand.

Work visa holders: Most work visa holders can join KiwiSaver, including those on Essential Skills, Skilled Migrant, Partner of a Worker, or Post-Study Work visas. Temporary work visas also qualify in most cases.

Not eligible: If you're on a visitor visa or some temporary visas, you cannot join KiwiSaver. People over 65 who haven't previously been members also cannot join (though existing members can continue past 65).

How KiwiSaver Works: The Basics

Understanding KiwiSaver's mechanics helps you see why it's such a valuable benefit. Here's the basic structure:

Automatic enrollment: When you start a new job in New Zealand, your employer must automatically enroll you in KiwiSaver unless you're already a member or have previously opted out. You have a grace period to opt out if you choose, but most people stay in because of the employer contributions.

Three contribution sources: Money flows into your KiwiSaver account from three places—your own contributions deducted from your pay, matching contributions from your employer, and annual government contributions if you meet certain criteria.

Investment growth: Your KiwiSaver provider invests your contributions according to the fund type you choose. Over time, your balance grows through both contributions and investment returns.

Locked until retirement: Generally, you cannot access KiwiSaver funds until you turn 65 or have been in the scheme for at least five years, whichever comes later. There are specific exceptions, including buying your first home, significant financial hardship, serious illness, or permanent emigration from New Zealand.

Contribution Rates: How Much Goes In

KiwiSaver contribution rates are flexible, allowing you to choose how much to save:

Your Contributions

You can contribute at rates of 3%, 4%, 6%, 8%, or 10% of your before-tax pay. The minimum is 3%, which is what you're automatically enrolled at. If you want to save more, you can increase your contribution rate by notifying your employer in writing.

These contributions come straight out of your pay before you receive it, making the saving automatic. For example, if you earn $60,000 annually and contribute at the standard 3% rate, that's $1,800 per year or about $69 per week going into your KiwiSaver.

Employer Contributions

This is where KiwiSaver becomes particularly attractive: your employer must contribute a minimum of 3% of your gross salary to your KiwiSaver account. This is essentially free money added to your retirement savings.

The employer contribution is calculated on your gross earnings up to the employee contribution rate. So if you contribute 4%, your employer matches with 3% (not 4%). Some employers offer higher contribution rates as an employment benefit, but 3% is the legal minimum.

Importantly for migrants: understanding how PAYE tax works helps you see that while employer contributions are considered taxable income, they go directly into your KiwiSaver account.

Government Contributions

The government contributes $521.43 per year if you personally contribute at least $1,042.86 annually (around $20 per week). This is essentially a 50-cent return on every dollar you contribute, up to the maximum government contribution.

To receive the full government contribution in the 2026 financial year (July 1, 2025 to June 30, 2026), you need to contribute the minimum amount. If you contribute less, the government contribution is proportionally reduced. If you contribute nothing, you receive no government contribution.

Choosing a KiwiSaver Provider

When you join KiwiSaver, you need to select a provider—the company that manages and invests your funds. New Zealand has numerous KiwiSaver providers, each offering different investment options, fees, and performance histories.

Major providers include: ANZ, ASB, BNZ, Westpac, Simplicity, Generate, Fisher Funds, Milford, and many others. Banks offer KiwiSaver schemes, but so do independent fund managers.

What to consider: Look at fees (lower is generally better), investment returns (past performance, though this doesn't guarantee future results), fund options (conservative vs. growth), and any ethical or sustainable investment preferences you have.

Default providers: If you don't choose a provider when you're enrolled, your employer assigns you to one of the government's default providers. You can switch providers at any time, though you can only be in one KiwiSaver scheme at once.

Switching providers: Many people switch providers to find better performance or lower fees. The process is straightforward—contact your new provider, and they handle the transfer. There are no penalties for switching.

Fund Types: Conservative to Growth

Within your chosen provider, you select a fund type based on your risk tolerance and time horizon until retirement. The main types are:

Conservative funds: Invest mainly in cash and bonds, offering lower returns but minimal risk of losing money. Suitable if you're close to retirement or highly risk-averse.

Balanced funds: A mix of shares, bonds, and other investments. Moderate risk and moderate expected returns. Common choice for those with 10-20 years until retirement.

Growth funds: Heavily invested in shares and property, offering higher potential returns but with more ups and downs. Suitable if you have 20+ years until retirement and can weather market volatility.

Aggressive funds: Almost entirely invested in shares, with highest potential returns and highest risk. Generally for younger investors with decades until retirement.

Most migrants under 40 choose balanced or growth funds because they have time to ride out market fluctuations. As you approach retirement age, many people gradually shift to more conservative funds to protect their accumulated savings.

Fees: What You'll Pay

KiwiSaver providers charge fees to manage your investment, and these fees directly impact your final balance. Even small fee differences compound significantly over decades.

Types of fees: Most providers charge an annual membership fee (typically $30-$48 per year) plus an annual management fee (percentage of your balance, often 0.50%-1.50%).

Why fees matter: A 1% difference in annual fees might seem small, but over 30 years on a $100,000 balance, it could mean tens of thousands of dollars less in your retirement savings.

Comparing fees: Use the government's KiwiSaver comparison tools (available on sorted.org.nz) to see how fees and returns differ between providers. Lower fees don't always mean better value if returns are also lower, but fees are one factor you can control.

Using KiwiSaver for Your First Home

One of KiwiSaver's most popular features for migrants is the ability to withdraw funds for purchasing your first home in New Zealand. This makes KiwiSaver not just a retirement tool but also a home-buying accelerator.

Eligibility: You can withdraw your KiwiSaver savings (except for the government contributions and any amounts you've withdrawn before) if you're buying your first home, you've been a member for at least three years, and you'll live in the property for at least six months.

What you can withdraw: Everything in your account except the government contributions and your initial $1,000 kick-start (if you joined before 2015). Employer contributions, your own contributions, and investment returns can all be used.

First Home Grant: Additionally, eligible first-home buyers can apply for a grant of up to $5,000 for an individual or $10,000 for a couple. This has income and house price caps, and you must meet minimum contribution requirements.

For migrants looking to establish themselves in New Zealand, this home-buying feature makes KiwiSaver particularly valuable. Understanding whether to rent or buy in New Zealand becomes more interesting when you realize KiwiSaver can help with the deposit.

Withdrawing KiwiSaver: The Rules

KiwiSaver is designed as a long-term savings tool, so access is restricted. Here are the circumstances when you can withdraw:

At retirement (65 years old): Once you reach 65 and have been in KiwiSaver for at least five years, you can withdraw your entire balance, some of it, or leave it invested. There's no requirement to withdraw.

First home purchase: As described above, with minimum three years' membership.

Significant financial hardship: If you cannot meet minimum living expenses or medical costs, you may apply to withdraw. This requires proving genuine hardship and is assessed case by case.

Serious illness: If you have a serious illness, injury, or disability that significantly affects your ability to work or your quality of life, you may apply for early withdrawal.

Permanent emigration: If you permanently leave New Zealand, you can withdraw your KiwiSaver savings, though you must have been overseas for at least one year first. This is important for migrants who may eventually return to their home countries.

Death: Your KiwiSaver balance forms part of your estate and goes to your beneficiaries.

KiwiSaver and Tax

KiwiSaver has specific tax treatments that differ from regular income:

Your contributions: These come from your after-tax salary. While they're deducted before you receive your pay, they've already had income tax applied.

Employer contributions: These are taxed as employer superannuation contribution tax (ESCT), which your employer handles. The rate depends on your income level.

Investment earnings: Your KiwiSaver provider pays tax on the fund's investment earnings, known as prescribed investor rate (PIR) tax. You provide your PIR rate (10.5%, 17.5%, or 28%) based on your income.

Withdrawals: Generally, KiwiSaver withdrawals are tax-free since tax has already been paid on contributions and earnings.

Getting your PIR rate correct matters because if it's too low, you'll have tax to pay later. If it's too high, you're paying unnecessary tax. When you open a bank account as a migrant, your bank will ask about your PIR rate for KiwiSaver purposes.

KiwiSaver for Temporary Workers

If you're in New Zealand on a temporary work visa, KiwiSaver still offers benefits but with some considerations:

Short-term workers: If you plan to stay in New Zealand only temporarily, you'll still receive employer contributions while you're here. When you leave permanently, you can withdraw your entire balance after being overseas for one year.

Building toward residency: Many migrants on work visas eventually gain residency. If this is your path, starting KiwiSaver early means you're building retirement savings and working toward first-home purchase eligibility.

Opting out: Temporary workers can opt out of KiwiSaver within the first eight weeks of starting a new job if they genuinely don't want to participate. However, you'd forgo employer contributions—essentially giving up 3% of your salary.

Common KiwiSaver Mistakes to Avoid

Migrants new to KiwiSaver often make these mistakes:

Not choosing a provider: Letting yourself get assigned to a default provider means you might not get the best fees or investment approach for your situation. Research providers and actively choose one.

Setting and forgetting: Many people never review their KiwiSaver. Check your balance annually, review investment performance, and ensure your fund type still suits your circumstances.

Wrong PIR rate: Using an incorrect prescribed investor rate means you're either overpaying tax or will owe tax later. Verify your PIR rate is correct for your income level.

Contributing too little: While 3% is the minimum, it might not provide adequate retirement income. Consider increasing your contribution rate if you can afford it, especially since you'll receive the full employer match up to 3%.

Not considering the First Home Grant: Many migrants don't realize they could qualify for this additional government support when buying their first New Zealand home.

How KiwiSaver Fits Into Your Financial Plan

As a migrant, KiwiSaver should be part of your broader financial strategy in New Zealand:

Start early: The sooner you join, the more you benefit from compound growth and employer contributions. Even if you're uncertain about staying in New Zealand long-term, the employer contributions alone make it worthwhile.

Complement other savings: KiwiSaver shouldn't be your only savings. You'll need emergency funds, house deposit savings beyond KiwiSaver, and potentially other investments. Understanding the cost of living in New Zealand helps you budget for both KiwiSaver and other savings goals.

Align with goals: If buying a house is your priority within three years, KiwiSaver serves that goal. If retirement is decades away, focus on growth funds for maximum long-term returns.

Review regularly: Life circumstances change. When you get a pay raise, consider increasing your KiwiSaver contribution. If you're starting a new job in New Zealand, verify your contribution rate transfers correctly.

Resources and Next Steps

To learn more about KiwiSaver and manage your account:

Sorted.org.nz: The government's free financial guidance website has comprehensive KiwiSaver information, comparison tools, and calculators to model your retirement savings.

Your provider: Contact your KiwiSaver provider directly for account-specific questions, changing contribution rates, or switching fund types.

IRD: The Inland Revenue Department website (ird.govt.nz) has official information about KiwiSaver rules, eligibility, and tax treatment.

Financial advisers: If you want personalized advice on KiwiSaver as part of your broader financial planning, consider consulting a registered financial adviser.

Final Thoughts

KiwiSaver represents one of the most valuable financial benefits available to workers in New Zealand. For migrants, it offers a structured way to save for retirement, access employer contributions, receive government support, and potentially fund your first home purchase.

While KiwiSaver might seem complex initially, the core concept is simple: regular contributions from multiple sources grow over time through investment returns, building substantial retirement savings. The earlier you start and the more you understand about provider selection, fund types, and contribution strategies, the better your long-term outcomes.

Most migrants find that joining KiwiSaver and receiving employer contributions is a no-brainer financial decision. The key is making informed choices about providers, contribution rates, and fund types that align with your personal circumstances and goals in New Zealand.

Whether you're planning to stay in New Zealand permanently or keeping your options open, KiwiSaver offers flexibility and financial benefits that make it worth understanding and utilizing throughout your time in Aotearoa.