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Upcoming KiwiSaver Changes

This website is operated by Moneyworks NZ Ltd and is not endorsed by, or affiliated with, the New Zealand government or Inland Revenue. Moneyworks NZ Ltd is using the KiwiSaver trade mark and logo under licence from Inland Revenue. To view the official New Zealand government KiwiSaver website, please click Here

There are some changes being made to the KiwiSaver rules this year. The legislation that introduces these changes is being implemented on the following dates:

From 1 April 2019

  • Two new contribution rate options are being added. Members can now contribute 6% or 10% of their before-tax pay via their employer, as well as the existing 3%, 4% or 8% contribution options.
  • The term ‘member tax credit’ or 'MTC' is renamed ‘Government contribution’.
  • The name 'contributions holiday’ is renamed ‘savings suspension’, and the maximum time period for a savings suspension is being shortened from five years to one year.

From 1 July 2019

  • Anyone aged 65 or over will be able to join KiwiSaver.
  • The five-year membership lock-in period will no longer apply for members aged 60-65 who join a KiwiSaver scheme for the first time. This means that when members turn 65: (1) they will usually be able to withdraw their savings no matter how long they've been a member; (2) they will not be eligible for Government contributions; and (3) their employer can also stop their contributions.
  • The lock-in period will continue to apply to individuals who joined KiwiSaver on or after 1 July 2019 as a result of a transfer from a complying superannuation fund, if the individual first became a member of the complying superannuation fund prior to 1 July 2019.

Members who are 60 or over and joined a KiwiSaver scheme or a complying superannuation fund before 1 July 2019 will have the option to opt out of the five-year membership lock-in period. If they opt out, they will not receive Government contributions and their employer can stop making contributions.



 

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