If your parents set up a KiwiSaver account for you when you were a child and you are 18, it is now your responsibility to manage your own KiwiSaver account, including choosing what fund is right for you.

Taking ownership of your long-term investments might not be the most exciting thing to happen on your 18th birthday, but if you read this blog now, the future you will thank you!

It's time for you to take charge of your financial future.

Benefits of KiwiSaver

Government contribution
Did you know that the government wants to help you save? Once you turn 18 (and until you are 65) and if you meet all the other criteria, the government will give you 50 cents for every dollar you contribute to your KiwiSaver account, up to $521 each year. That's basically free money! To get the maximum contribution, you’ll need to put in about $20 a week (or $1,043 over the year from July 1 to June 30). More info here.

Employer contributions
Once you turn 18, if you're working, or start working, your employer is required to chip in too. These compulsory employer contributions are at least 3% of your gross salary or wages. So, not only are you saving from your own pay, but your employer is boosting your savings as well. Add in the government contribution, and any returns your investments earn, and you'll see your savings really start to grow over the years.

Buying a first home
After contributing to KiwiSaver for at least three years, you can use some of your savings to buy your first home. This can be a huge help in getting you on the property ladder. Check out the future projection tool (you need to sign into the Simplicity app here) to see how your savings could grow and how much you might be able to withdraw when the time comes.


Four Ways to Maximize Your KiwiSaver

1. Make sure you're in the right fund
Choosing the right KiwiSaver fund is crucial for your long-term savings. At Simplicity we have five different KiwiSaver types - Defensive, Conservative, Balanced, Growth and High Growth. Different funds have different levels of risk and potential returns. Use the Fund Finder tool to find a fund that suits your goals and risk tolerance. Whether you’re comfortable with a bit of risk for potentially higher returns or prefer a more stable, conservative fund, there’s an option that’s right for you.

2. Ensure you’re contributing enough
As an employee, contributions will automatically come out of your pay. You can choose to contribute 3%, 4%, 6%, 8%, or 10% of your earnings. Even a small increase in your contribution rate can significantly boost your savings over time. Use the future projection tool (you'll need to sign into the Simplicity app again here) to see how changing your contribution rate can impact your savings. It's pretty easy to change your KiwiSaver contribution rate, you can do it through your employer, your KiwiSaver provider or Inland Revenue

3. Check your benefits
Make sure you’re getting all the benefits you’re entitled to. Check that your employer knows you're in KiwiSaver and they're making contributions. Some employers (mostly in big companies) will match you at a higher rate than the compulsory 3% rate (so if you contribute 4% they will too). Find out if yours does? And most importantly, make sure that you’re putting in enough to get the full government contribution each year. These extra contributions can really add up over time, giving your savings a significant boost.

4. Regular check-ins
Even if your KiwiSaver account is ticking along nicely, it’s important to check in every now and then. Your financial goals might change, or there might be new investment options available that suit you better. Whether you’re planning to buy a house, or just setting yourself up for a comfortable retirement, keeping an eye on your KiwiSaver will help you stay on track.


KiwiSaver is a fantastic way to build a strong financial future, and by starting young you can take full advantage of the magic of compounding returns. By understanding the benefits, and making informed decisions about fund type and your contributions, you can maximize your savings and take full advantage of what KiwiSaver has to offer.

Remember, small steps now can lead to big rewards later on. Happy saving!


Key words

The information provided and opinions expressed in this post are intended for general guidance only and not personalised to you. These materials do not take into account your particular financial situation or goals and are not financial advice or a recommendation. This post is not intended to convey any guarantees as to the future performance of any of the investment products, asset classes, or capital markets mentioned. Past performance is no guarantee of future performance. Information is current at the time of posting, and subject to change without notice. Simplicity NZ Ltd is the issuer of the Simplicity KiwiSaver Scheme and Investment Funds. For Product Disclosure Statements please visit our website simplicity.kiwi.