Key questions about KiwiSaver

Not sure about joining KiwiSaver? Get the answers to these key questions here:

• When should I seriously consider KiwiSaver?
• What if I'm in an existing scheme?
• How will I know what kind of investment fund to choose?
• What if I need financial advice?
• What is a PIE?

Not sure if you can still afford KiwiSaver?
If you find it difficult to keep up your contributions, you have several options. Find out more…

Thinking of changing schemes?
You can change KiwiSaver schemes at any time. Find out more…

Should I pay off debt or save in KiwiSaver? 
In financial terms, the answer is “do both at the same time” – especially if you are employed. Find out more...

What if I’m in an existing scheme?

If you’re already a member of (or you’re able to join) another superannuation scheme to which your employer will contribute, you need to compare the benefits, fees, service levels and potential returns of that scheme and a KiwiSaver equivalent.

What if I need financial advice?

If you need professional financial advice, read our advice checklist. 

How will I know what kind of investment fund to choose?

Try our Risk recommender calculator to see what type of risk – low, medium or high – you are comfortable with. Then use our Investment recommender to see what types of investments might suit.

See Funds and schemes to find out which organisations offer KiwiSaver schemes for each fund type - conservative, moderate, balanced, and growth.

Use our KiwiSaver fees calculator to see what fees are charged by KiwiSaver providers.

What is a PIE?

There are new tax rules for New Zealand-based managed funds. Under these rules, if a superannuation scheme is a PIE, or Portfolio Investment Entity, there are some important tax advantages.

All KiwiSaver default schemes are PIEs, as well as many other KiwiSaver schemes and also non-KiwiSaver superannuation schemes.

In most cases, lower-income investors in PIEs will be taxed at 19.5% on their fund or scheme income.

Upper-income investors in the 39% tax bracket will pay only 30% tax on their PIE income.

Also, if:

• Your non-PIE taxable income is below $38,000 a year, and
• Your total taxable income - plus PIE income - is below $60,000 a year

Then all of your PIE income - including any amount above $38,000 - will be taxed at 19.5%.

The tax paid by a PIE on your behalf is a 'final' tax.  If you normally don't file a tax return, you won't have to file one because you have invested in a PIE.

Each year the PIE will ask you what your tax rate will be for the coming year, and explain how to work that out. That rate - called your 'Prescribed Investor Rate' or PIR - will be either 19.5% or 30%. If you don't supply your PIR, the PIE will tax you at 30%.

For more information about PIEs and PIRs, visit the Inland Revenue website.