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 = $669 a week ($34,762 a year)

 

After 1 year, the position is:
Your savings (3%)      $  1,043 i.e. $20 a week
Government's MTC tax credit   +  $    521  50 cents for $1 up to $20 a week i.e. $521 for a full year
Your employer's subsidy   +  $    860 Employers pay 3% less tax
Investment earnings   +  $      47 (Say 5% after-tax)
Fees    -  $      30  
        $2,441  

 

After 5 years, the position is:

34762 june2015.PNG

 

*Assumes that you earn $34,762 a year. If you earn less than $34,762, 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 and there is no employer subsidy.