KiwiSaver includes three parties, employee, employer, and government. First of all, KiwiSaver scheme requires employee to contribute a minimum amount of at least $1,042.86 a year (from 1 July to 30 June) in order to receive member tax credit of $521.43. Employee and employer could choose through a wide variety of contribution percentage towards KiwiSaver Scheme.
There will be five changes to the scheme of KiwiSaver
KiwiSaver Scheme allows people who are over 65 to opt in to KiwiSaver. KiwiSaver fund tends to have less fees and money would be more liquid.
This new change to the KiwiSaver Scheme will be effected on 1st of July 2019. There would be no five-year waiting period for people who joined KiwiSaver at the age of 60 or over to withdraw their money.
Currently, employee can choose contribute range of 3 per cent, 4 per cent, or 8 per cent of the earning.
The new change will introduce two more contribute percentage options of 6 per cent and 10 per cent. The new options will provide members more control over their saving.
When the changes to the KiwiSaver Scheme is introduced and effected, there will be no contribution holiday, and it will be replaced by savings suspension.
From the statistics of KiwiSaver balances, it has kept increasing throughout the past three years. The median value of the balances increased by 62 per cent than balances in 2015, which shown indication of employee and employer contributions have been steadily increasing.