KiwiSaver is the foundation of New Zealand’s retirement savings system, designed to help residents build financial security for their future. Over the years, KiwiSaver has grown and changed quite a bit, making it easier for people to save for their golden years. The timeline below provides a snapshot of how KiwiSaver has evolved from its early days to now, highlighting key moments and updates along the way.

2007: KiwiSaver Kicks Off

• On July 1, 2007, KiwiSaver was introduced by the New Zealand government to tackle the retirement savings gap. Before KiwiSaver, many Kiwis relied solely on the government’s Superannuation, which, while reliable, didn’t always stretch far enough to ensure a comfy retirement.

The Early Days:

• Member Contributions: Back then, you could choose to contribute either 4% or 8% of your salary to KiwiSaver.

• No Employer Contribution Required: Employers weren’t required to chip in at that time.

• KiwiSaver Kick-Start: A $1,000 one-time sum was given to new members to kickstart their savings.

• Member Tax Credit: Government contributions were capped at $1,040 a year.

• Default Providers: Initial default providers included AMP, AXA, ASB, Mercer, OnePath, and Tower.

• Default Portfolio: The default investment option was a conservative portfolio, keep things low-risk.

2009:

• Employer Contributions Start: Employers were required to contribute up to 2% of employees' wages.

2012:

• Tax Credit Adjusted: The member tax credit was reduced to 50 cents per dollar contributed, capped at $521 per year.

2013:

• Contribution Rates Go Up: The minimum contributions for both employees and employers were increased from 2% to 3%. Now, employees could choose to contribute 3%, 4%, or 8%.

2014:

• Provider Update: The default provider list expanded to nine options for a 7-year term, including AMP, ANZ, ASB, BNZ, Grosvenor, KiwiBank, Mercer, Fisher Funds, and Westpac Default.

2015:

• KiwiSaver Kick-Start Ends: The $1,000 Kick-Start payment was phased out as the government shifted its spending priorities.

2019:

• More Choices and Age Flexibility: New contribution rates were introduced (6% and 10%), and KiwiSaver membership was opened up to those over 65.

2021:

• New Default Providers: The list of default providers was trimmed to six for a 7-year term: BNZ, Booster (formerly Grosvenor), Kiwi Wealth, Simplicity, Smartshares, and Westpac.

• Default Fund Changes: The default portfolio became a “Balanced” option, fees were lowered, and providers had to engage with members at key stages of their KiwiSaver journey.

• Ethical Investing: Investments in fossil fuels and illegal weapons were excluded from default funds.

How much KiwiSaver has grown: