How to make the most of KiwiSaver

Here are five tips that will get you off to a great start in terms of securing your financial future.

4 minute read

If you're not already enrolled in KiwiSaver, the thought of signing up may seem a little daunting at first, particularly if the idea of investing money is new to you. Similarly, if you enrolled by default when you started a new job you might not have paid any attention to it since.

Because of how KiwiSaver is structured, it pays (literally) to spend at least a little time considering your options to ensure you’re in the right fund for your retirement timeframe or to help buy your first home. The following five tips will get you off to a great start when it comes to securing your financial future and getting as much bang for your buck as possible.

1. Find the right fund

KiwiSaver isn't a fancy savings account. It’s a genuine investment scheme. Your KiwiSaver scheme provider invests your money on your behalf in different investments such as cash, bonds, or company shares. All going well, by the time you’re eligible to withdraw your savings you’ll have some extra money on top of what you contributed. It’s up to you to choose the type of investment fund you want your money to go into.

KiwiSaver scheme providers typically have a range of funds for customers to choose from, and each fund comes with its own level of risk. Generally speaking, the higher the risk an investment carries, the higher the potential return. A ‘growth’ fund will generally mean better returns over time but tends to come with more risk. A ‘conservative’ fund means less risk but generally means a lower return over time, so you need to choose the right one for your particular circumstances. Your KiwiSaver scheme provider should clearly spell out the differences between its funds and may be able to offer advice on how to decide which fund is the best fit.

2. Check your benefits

KiwiSaver brings with it a number of entitlements that can really pay off if you know about them. If you're eligible, the government will contribute 25c for every $1 you contribute to your KiwiSaver account, up to a maximum of $260.72 each year. This is called the Government contribution (previously called Member Tax Credit). It applies even if you make a lump sum contribution just before the annual cut-off of 30 June of each year. Find out more about how the Government contribution works.

Tip: Did you know your employer generally must also contribute the equivalent of 3.5%* of your pay to your KiwiSaver account on top of what you pay? This is called the compulsory employer contribution.

3. Ensure you’re contributing enough

If you are employed, you will contribute at least 3.5%* of your pay to your KiwiSaver account, but you can choose to contribute 4%, 6%, 8% or even 10%. If you are self-employed, or not currently working, you can choose the amount you want to contribute. Think about contributing an amount that at least helps you get the maximum Government contribution each year. Remember that the more you contribute now, the more you’ll likely have to retire on when the time comes. Even small increases can really add up over time and you can make lump sum contributions on top of what you usually pay, at any time.

Tip: Use our online calculator to see how your KiwiSaver savings might grow between now and age 65, and the impact your fund choice or contribution rate could have on your lifestyle when you retire.

4. Check the tax rate

Income that's generated in your KiwiSaver account is subject to tax. You'll need to tell us your prescribed investor rate (PIR) when you invest, or if your PIR changes. If you don't tell us, the default rate of 28% will apply. This could be higher than your correct prescribed investor rate.

If you use a PIR that's lower than your correct PIR, you'll be required to pay any tax shortfall (and may be subject to penalties). If you use a PIR that's higher than your correct PIR, Inland Revenue will factor this in to your overall income tax assessment. This means you may receive a refund.

It's a good idea to check your PIR each year and let us know if there are any changes.

5. Take a hands-on approach

Once your KiwiSaver account is set up and ticking over nicely, it’s important to check in from time to time to make sure you’re on the right track (we recommend doing these quick check-ups annually). Many providers have online portals to keep track of the balance - BNZ, for example, shows your BNZ KiwiSaver Scheme account balance within Internet Banking. At certain stages of your life you might want to take on some more risk to increase possible returns, while at other times you might prefer a less risky fund.


*The default minimum contribution rate for employees and employers has increased from 3%. This change is happening in two stages. The first increase from 3% to 3.5% took effect from 1 April 2026. The second increase from 3.5% to 4% will be effective from 1 April 2028. KiwiSaver members will be able to apply to IRD for a temporary rate reduction to keep their contributions at the current rate of 3%. Temporary rate reductions will be for a maximum period of 12 months, but members will be able to re-apply to IRD for further rate reductions. During a temporary rate reduction, employers may also contribute at the reduced rate of 3%.

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BNZ Investment Services Limited, a wholly owned subsidiary of Harbour Asset Management Limited, is the Issuer and Manager of the BNZ KiwiSaver Scheme. Download a copy of the BNZ KiwiSaver Scheme Product Disclosure Statement PDF 1.1MB, or pick up a copy from a BNZ branch.

Investments in the BNZ KiwiSaver Scheme are not bank deposits or other liabilities of Bank of New Zealand (BNZ) or any other member of the National Australia Bank Limited group. They are subject to investment risk, including possible delays in repayment. You could get back less than the total contributed. No person (including the New Zealand Government) guarantees (either fully or in part) the performance or returns of the BNZ KiwiSaver Scheme or the repayment of amounts contributed. National Australia Bank Limited, the ultimate owner of BNZ, is not a registered bank in New Zealand but a licensed bank in Australia and is not authorised to offer the products and services mentioned on this webpage to customers in New Zealand.

BNZ Investment Services Limited (BNZISL) uses the BNZ brand under licence from Bank of New Zealand, whose ultimate parent company is National Australia Bank Limited. No member of the FirstCape group (including BNZISL) is a member of the NAB group of companies (NAB Group). No member of the NAB Group (including Bank of New Zealand) guarantees, or supports, the performance of any member of FirstCape group’s obligations to any party.

This article is solely for information purposes and is not intended to be financial advice. If you need help, please contact BNZ or your financial adviser. Neither BNZ nor any person involved in this article accepts any liability for any loss or damage whatsoever which may directly or indirectly result from any information, representation, or omission, whether negligent or otherwise, contained in this publication.