On 21 May 2015, the National led government delivered its 2015 budget policies. Included in its budget was the removal from 2 pm that day of the $1,000 KiwiSaver kick-start payment.
Prior to the budget, every person eligible to join KiwiSaver who joined received a $1,000 kick-start payment. It was paid 3 months after they joined. This applied to everyone who joined including children.
The removal of the $1,000 kick-start removes an incentive for people to join KiwiSaver, particularly those under age 18. However for those 18 or older, and who are eligible for the annual government paid member tax credit (up to $521 a year), KiwiSaver continues to be a good way to save for retirement. If you are an employee your employer also is required to save the minimum 3% employer contribution.
