KiwiSaver questions one year on

If you’ve been contributing to KiwiSaver since it started in July last year, you may be asking yourself questions like ‘Can I still afford it?’ or ‘Should I change schemes?’

In answer to the first question, there are a number of options for anyone finding it difficult to keep up with their KiwiSaver payments.

If you are an employee and have been a member for a year or more, you can put your payments on hold for between three months and five years by taking what’s called a ‘contributions holiday’.

If you’ve been a member for less than 12 months, and if you suffer or are likely to suffer financial hardship you may be eligible for an early contributions holiday. Contact Inland Revenue on 0800 549 472 (0800 KIWISAVER) for more information.

If you’re self-employed or not working, you will need to talk to your scheme provider to negotiate a savings break or reduce the amount of your payments.

After paying in for 12 months you may be able to divert up to half of your KiwiSaver contributions to mortgage payments on the home you live in (not an investment property). Check with your scheme provider and mortgage lender.

Thinking about changing KiwiSaver Schemes?

You can change KiwiSaver schemes at any time by contacting a scheme provider directly. Note that you can only belong to one KiwiSaver scheme at a time, and you may be charged a transfer fee by your old scheme provider.

You can also change funds within your current provider, for example from a low to a higher risk fund. 

Sorted has more detailed answers to these questions.

We also have decision making tools and information for those thinking about joining KiwiSaver, including the Quick KiwiSaver calculator, the KiwiSaver Decision Guide, and the KiwiSaver fees calculator.

Published 5 August 2008