Home › Situations › KiwiSaver and retiring
KiwiSaver and retiring
Contributions, the government top up, what a balance at 65 is likely to be, and how KiwiSaver splits on separation.
20 situations worked through, 16 of them with the sums shown. Each one links to the guide that sets out the rules behind it, and that guide is where any rate or threshold is kept current.
The people in these situations are illustrations written to show how the rules land on somebody, not real customers and not case histories. The arithmetic is real and the rules are real; the names and the circumstances are made up to teach.
Nothing on this page matches that. Try a shorter word, or the full list of situations.
KiwiSaver Fundamentals
Sarah, Age 25 - Starting Her Career
Sarah just started her first full-time job earning $55,000 per year. She's been auto-enrolled in KiwiSaver at the 3.5% default rate and placed in a default balanced fund.
- Sarah's contribution (3.5%): $55,000 × 0.035 = $1,925/year
- Employer contribution (3.5%): $55,000 × 0.035 = $1,925/year
- Government contribution: $1,925 × 0.25 = $481.25 (capped at $260.72)
Total annual contributions: $1,925 + $1,925 + $260.72 = $4,110.72
James, Age 45 - Mid-Career Professional
James has been in KiwiSaver for 15 years, earning $85,000 annually. He's been contributing 4% to a growth fund and has accumulated $92,000. He's wondering if he should increase his contributions.
- James's contribution (4%): $85,000 × 0.04 = $3,400/year
- Employer contribution (3.5%): $85,000 × 0.035 = $2,975/year
- Government contribution: $3,400 × 0.25 = $850 (capped at $260.72)
Total annual contributions: $3,400 + $2,975 + $260.72 = $6,635.72
James has 20 years left until retirement. If he increases his contribution now, the extra $1,700 per year will compound significantly. Waiting even 5 years would reduce his retirement balance by approximately $30,000.
Maria & Tom - First Home Buyers
Maria (32) and Tom (34) have been in KiwiSaver for 7 and 9 years respectively. They're looking to buy their first home and want to understand their options.
- Estimated government contributions (Maria): ~$3,500
- Estimated government contributions (Tom): ~$4,500
- Available for withdrawal (Maria): $45,000 - $3,500 - $1,000 = $40,500
- Available for withdrawal (Tom): $58,000 - $4,500 - $1,000 = $52,500
Total available for deposit: $93,000
While withdrawing KiwiSaver for a first home can help get on the property ladder, Maria and Tom should consider:
Linda, Age 58 - Approaching Retirement
Linda plans to retire at 65. She's been in KiwiSaver since it began in 2007, contributing 6% throughout. She has $185,000 in a growth fund and is wondering about her strategy for the next 7 years.
- Salary: $72,000
- Linda's contribution (6%): $4,320/year
- Employer contribution (3.5%): $2,520/year
- Government contribution: $260.72/year
Total annual contributions: $4,320 + $2,520 + $260.72 = $7,100.72
David - Self-Employed Contractor
David (38) is self-employed as a building contractor. He joined KiwiSaver voluntarily 5 years ago and makes contributions when he can afford them. He's wondering how to optimise his retirement savings.
- Current contribution: $1,500/year
- Government contribution: $1,500 × 0.25 = $375 (capped at $260.72)
- Missing out on potential employer contribution: $3,325/year (3.5% of $95,000)
Total: $2,021.43/year
While self-employed individuals don't get employer contributions, KiwiSaver contributions can be claimed as a business expense in some situations. David should consult with an accountant about structuring his business to maximise tax benefits and KiwiSaver contributions.
KiwiSaver Government Contribution
Aroha - Salaried Employee ($65,000)
Aroha earns $65,000 and contributes to KiwiSaver at the 3.5% default rate straight from her pay. Her income is well under $180,000 and she is 34, so she is fully eligible.
- Annual pay-based contribution: $65,000 × 3.5% = $2,275
- This is above the $1,042.86 threshold
- Government matches the first $1,042.86 only: $1,042.86 × 25% = $260.72
Government contribution: $260.72 (the full amount)
Sam - Part-Time Worker ($22,000)
Sam works part time earning $22,000 and contributes at the 3.5% default rate from his pay. His contributions fall short of the threshold, so a top-up is worthwhile.
- Annual pay-based contribution: $22,000 × 3.5% = $770
- Government contribution on $770: $770 × 25% = $192.50
- To reach the maximum:
- Shortfall: $1,042.86 - $770 = $272.86
- Top-up of $272.86 before 30 June earns: $272.86 × 25% = $68.22 extra
With top-up: full $260.72 instead of $192.50
Sam pays in $272.86 and gets $68.22 back, plus that $272.86 stays invested for his retirement. Few savings options return 25% instantly. If he cannot spare the full shortfall, any partial top-up still earns 25 cents per dollar.
Mere - Self-Employed ($48,000 profit)
Mere runs her own business and does not pay herself through PAYE, so nothing is deducted for KiwiSaver automatically. To get the government contribution she makes voluntary payments.
- Automatic contributions: $0
- Voluntary lump sum before 30 June: $1,042.86
- Government contribution: $1,042.86 × 25% = $260.72
Government contribution: $260.72
Because no contributions come out of your pay, it is easy to reach 30 June having contributed nothing and miss the entire $260.72. Set up a regular automatic payment, or make a lump sum each June, so you never let the deadline pass.
David - High Earner ($195,000)
David earns $195,000 and contributes at the 3.5% default rate from his pay. Because his taxable income is above $180,000, the income cap introduced on 1 July 2025 applies to him.
- Annual pay-based contribution: $195,000 × 3.5% = $6,825
- Taxable income: $195,000 (above the $180,000 cap)
Government contribution: $0
Before 1 July 2025 there was no income test, so David would have received up to $521.43. Under the current rules he gets nothing from the government, though his own and his employer's contributions still build his savings. His higher earnings mean he is contributing plenty regardless.
Splitting KiwiSaver on Separation
Aroha and Tama - a 10-year marriage
Aroha and Tama have been married for 10 years. Neither had KiwiSaver before they married, so both accounts were built up entirely during the marriage. Aroha's balance is $85,000 and Tama's is $35,000.
- Both balances are fully relationship property, because all of it was built up during the marriage.
- Combined KiwiSaver: $85,000 + $35,000 = $120,000
- Each partner's half share: $120,000 ÷ 2 = $60,000
- Aroha holds $85,000, which is $25,000 above her $60,000 share.
- Tama holds $35,000, which is $25,000 below his $60,000 share.
To even things up, $25,000 of value needs to move from Aroha to Tama.
Mia and Jack - a short de facto relationship
Mia and Jack lived together as a couple for two years, then separated. They have no children together, and neither made an unusual contribution to the other's finances. Mia's KiwiSaver is $22,000 and Jack's is $9,000.
- Their de facto relationship lasted under three years.
- The Property (Relationships) Act generally does not apply to a de facto relationship of under three years.
Mia keeps her $22,000 and Jack keeps his $9,000. Neither KiwiSaver is shared.
Priya - a balance she brought into the relationship
Priya already had $40,000 in KiwiSaver when her relationship began eight years ago. Her balance is now $120,000. She and her partner are separating.
- Balance at the start of the relationship: $40,000 (generally Priya's separate property)
- Built up during the relationship: $120,000 - $40,000 = $80,000
- That $80,000 of contributions and growth is relationship property.
- Her partner's share of the shared portion: $80,000 ÷ 2 = $40,000
Roughly $40,000 of value is shared, while the $40,000 Priya brought in stays hers.
Wiremu - an inheritance kept separate
During his marriage, Wiremu inherited $50,000 from his late mother. He made a voluntary lump-sum contribution of the $50,000 into his KiwiSaver, kept the estate paperwork showing where the money came from, and never ran it through the couple's joint accounts.
- The $50,000 came from an inheritance, so it starts as Wiremu's separate property.
- He kept it traceable and did not intermingle it with relationship property.
The $50,000 and its own growth generally stay Wiremu's separate property and are not shared.
Superannuation Guide
Couple's Combined Retirement
Both age 30, planning for retirement together:
- Salary: $85,000, 6% contribution
- Annual: $6,821
- 35 years to 65 at 5%: $775,000
Early Retirement Goal (FIRE)
Aggressive saver targeting retirement at 50:
- Age: 28, Salary: $95,000
- KiwiSaver: 10% ($12,721/year)
- Additional index funds: $25,000/year
- Total savings: $37,721/year
Impact of Contributions Holiday
Taking 2-year KiwiSaver break vs continuing:
- 30 years of contributions
- Balance at 65: $331,000
Fund Type Impact
Same contributions, different fund choices:
This one turns on the rules rather than on a calculation, so there are no sums to show.
NZ Superannuation Guide
Raj, 65, Auckland
Turned 65 but didn't apply for NZ Super because he was still working and assumed he wasn't eligible.
This one turns on the rules rather than on a calculation, so there are no sums to show.
Hans and Eva, Christchurch
Hans receives a German government pension of $600/week NZD. Eva was born in NZ.
This one turns on the rules rather than on a calculation, so there are no sums to show.
Ngaire, 68, Wellington
Uses her SuperGold card strategically to save money:
This one turns on the rules rather than on a calculation, so there are no sums to show.
Saving and investing Running a business Buying a first home Running a household Debt you cannot pay Scams, faulty goods and your rights Changing or losing a job Separation, death and estates Understanding your pay and tax Owning a rental or holiday home
Every situation
Situations are taken from the guides listed above and are worked examples for education, not advice. Figures used in an example were current when the guide was written; the guide holds the maintained figure. Last reviewed 2026-09-07. See also the arithmetic on its own, every question the site answers and the guides.