Important changes to KiwiSaver that could help you on your savings journey
Some exciting changes happened to KiwiSaver recently that offers you more options for your savings journey.
New contribution rates
The big news is that you're now able to put 6% or 10% of your salary into KiwiSaver, as well as the existing options of 3%, 4% or 8%. Your employer contributions will remain at 3%, unless your employer has agreed to a greater amount. Lifting by even a little could help you make extra gains and reach your savings goals faster.
Shorter savings break
If your circumstances change unexpectedly, you can pause your KiwiSaver savings by applying for what's now called a savings suspension (previously called a contributions holiday). This period was up to five years but has now been reduced to 12 months.
You can now join KiwiSaver at 65 or over
A big change is that if you are 65 or over, you can now join KiwiSaver. Under the new rules, you also won’t have to wait five years to access your money.
There's no more five-year lock-in for new members over 60
As of 1 July, all new members can access their KiwiSaver savings from age 65, including those who join age 60 or above.
For existing members who joined prior to 1 July and are currently in a lock in period, you’ll need to sit tight for a little longer. From 1 April 2020, you’ll be able to make a withdrawal at age 65, even if your lock-in date is later. However, if you do so, you will lose eligibility for Government or compulsory employer contributions.
Life is an adventure - whether you’re saving for your first home or your retirement, there are many paths you can take.
You also have a few options to accelerate your journey from choosing the right fund to suit your financial goals to how much money you put towards your KiwiSaver savings.
You can play with our new KiwiSaver calculator to see where your adventure is taking you.
Take advantage of Lifesteps – a hassle-free investment strategyShow more
The Lifesteps Investment Programme (Lifesteps) automatically allocates savings to the fund that matches your age over time. This means your savings are invested in the most appropriate fund for a typical investor your age.
When you’re younger, you can generally accept more unpredictable investment returns, in exchange for the potential to earn greater returns over the long term.
However, as you get older you have less time to recover any losses before needing your retirement savings. Lifesteps aims to reduce the potential for investment losses as you age.
Types of contributionsShow more
There are a few different ways you can contribute to your savings with the AMP KiwiSaver Scheme. These can include:
- deductions from your pay (via PAYE)
- regular payments via direct debit
- lump-sum payments via internet banking direct to AMP or via Inland Revenue.
For PAYE payments you’ll need to select how much of your gross salary or wages to contribute: 3%, 4% 6%, 8% or 10%. If you don’t let your employer know, your default rate will be 3%.
Your employer will make deductions at the rate you choose. You may want to check that you are contributing at least $20 a week to ensure that you are contributing enough to get the maximum Government contribution each year.
Find out more about contributing to KiwiSaver.
Important informationShow more
AMP Wealth Management New Zealand Limited is the issuer and manager of the AMP KiwiSaver Scheme (the 'Scheme'). The Supervisor of the Scheme is The New Zealand Guardian Trust Company Limited.