How much should I contribute to KiwiSaver?

There are a few options for you to consider when contributing to KiwiSaver.

If you are on PAYE, you need to contribute at least 3% and you have the option for 4 or 8%. Generally most people contribute the 3% minimum as they have a mortgage to pay or other bills.

This is fine, if you are also paying extra to the mortgage to pay it back faster, and then once you finish paying it back you then ramp up your savings to retirement to get as much as you can.


If you are saving for a house, then 3% is still fine, but if you are going to be using KiwiSaver for your deposit and you want to lock away some money and get a bit more interest from it, consider the 4 or 8% rates.

Don’t forget to get advice from your DUX adviser on how to save a house deposit and make the most of your KiwiSaver and other savings during this time.


Either way you need to make sure you are contributing enough to put in at least $1042 a year, so you get the maximum tax credits. On a full time salary, as long as you earn at least $34 733 a year you are fine, but if you are on casual or sporadic hours then you will need to work this out. As long as at least $20 a week ($40 a fortnight) is going in to KiwiSaver you are fine.


If you are self employed or not on PAYE, then you need to make sure you get the tax credits at least, so contribute $20 a week through automatic payment, or $1042 once year. If you are saving for a house and want to make sure you get the HomeStart grant, then you need to contribute 3% of whatever you do earn.


Overall there is no one right amount, you have to be able to afford it, but there are some good guidelines so you don’t miss out.

If you have any questions on your KiwiSaver or want to make sure you are in a good plan with good ongoing advice, we can help.

Alan Borthwick