KiwiSaver is about securing a better future. Whether it is to save a deposit for a house or for your ultimate retirement, you can generally save more in KiwiSaver than in alternative investment products. 

Example*: pay = $500 a week ($26,000 a year)

 

After 1 year, the position is:
Your savings  (3%)         $    780 i.e. $15 a week
Government's MTC tax credit     +  $    390 $1 for $2 up to $10 a week i.e. $521 for a full year
Your employer's subsidy     +  $    644 Employers pay 3% less tax
Investment earnings     +  $      35 (Say 5% after-tax) 
Fees     -  $       30  
         $  1,819  

 

After 5 years, the position is:

$26,000 june2015.PNG

 

*Assumes that you earn $26,000 a year. If you earn less than $26,000, 3% will be less. If you earn more, 3% will be more. If you are not an employee, you can choose how much you save - the 3% does not apply and there is no employer subsidy.