Making contributions You save money into your account on a regular basis. If you are working you can choose contributions of 3%, 4%, 6%, 8% or 10% of your before tax pay or you can make lump sum deposits.
I've always maxed out my employee contributions and the reason for this is that if it never comes in to my account, I'll never miss it. I've contributed thousands of dollars to my kiwi saver by doing this and the best thing about it is - I haven't missed a cent of it.
Cashing the money in You become eligible to withdraw your savings when you reach your qualifying age (currently age 65*). Or, you can also make a Kiwi Saver Withdrawal when you come to purchase your first home. This is what I am planning on doing.
Be sure to start early Over time, your balance will grow from your contributions plus investment returns (the money earned on your savings) so the sooner you start contributing the quicker your savings will build. Compounding interest works like magic in Kiwi Saver, so the longer your money is in there working, the more chance you have of making it grow.
Employer contributions If you are working, your employer has to contribute at least 3% of your before-tax pay. This all adds up!