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Getting the most out of your account

Maximise your savings potential by getting more from your KiwiSaver account. Whether you choose to increase your contribution rate, pick the best fund for your needs, or learn how to ensure you are entitled to the Member Tax Credit each year. 

Contribution rate

Your level of contribution will have a significant impact on your future savings, whether it's 3%, 4% or 8% of your before-tax pay, or any voluntary contributions you make. Over time, a higher contribution rate will make a big difference to the overall value of your KiwiSaver account, so it's important to make changes when you can, big or small.

You can:

  • Increase your contribution rate simply by advising your employer
  • If you’re not employed or are self-employed, you can set your own level and frequency of contributions
  • Make additional voluntary contributions at any time, via your internet banking or by setting up a direct debit/automatic payment
  • If you collect Fly Buys points on your everyday spending, with BNZ you can turn those points into extra KiwiSaver contributions. You can also use BNZ Advantage Cash Rewards as additional contributions.

The below example shows how much extra your monthly retirement income could be by contributing a little extra each week.

The impact of an extra $20 contribution per week on balance at retirement*

Kiwisaver extra contribution 3

Don't delay. The earlier you start investing, the greater the growth potential of your KiwiSaver account. Over time, investment returns will add to your own, your employer and any Government contributions you receive. These gains will keep adding to your pot of money. It’s called compounding returns, and it’s one of the most powerful forces at play.

The below example shows how much more you could save by the time you’re 65 if you start saving just 3% of a $35,000 p.a. salary at the age of 25 versus starting at the age of 50 contributing 8% of a $100,000 p.a. salary.

The impact of starting saving earlier on balance at retirement*

Kiwisaver impact starting saving 5

Make sure you're in the right fund

Making sure you're in the right fund is just as important to the growth of your KiwiSaver account as making regular contributions. You need to choose a fund that suits both your attitude to risk and your investment timeframe.

Each of the six BNZ KiwiSaver funds invest in a different mix of growth and income assets, providing a different level of risk and return.

If your circumstances change, you should reevaluate your fund choice using our What kind of investor am I? tool. Our BNZ Authorised Financial Advisers are also on hand to help you find out which fund is best suited to you.

The below example shows how much more you may be able to save by the time you're 65 if you invest in a Growth Fund versus a Conservative Fund.

The impact of fund choice on balance at retirement*

Kiwisaver choose right fund 6

Annual Government contribution (Member Tax Credit)

The annual Government contribution to your KiwiSaver savings is called the ‘Member Tax Credit’, but it has nothing to do with your tax.

How it works

If you qualify for the Member Tax Credit, the government will contribute 50 cents for every dollar you contribute to your KiwiSaver account, up to a certain threshold.  

For example, if you put in at least $1,042.86 into your KiwiSaver account during the Member Tax Credit year (1 July – 30 June), the Government will contribute up to a maximum of $521.43^.

You should receive the Member Tax Credit as a lump sum, paid into your KiwiSaver account around July/August each year.

For more information on the Member Tax Credit, or whether you qualify, visit the Government’s KiwiSaver website.