🌍 BIGGER FINANCIAL WORLD · LESSON 3

What Is KiwiSaver?

KiwiSaver is a New Zealand savings and investment scheme designed to help people build money for their future.

The basics

Saving for the long term

KiwiSaver is generally connected to employment. Money can be contributed regularly and invested. It's intended primarily for long-term goals, particularly retirement, and there are rules around when and how it can be accessed.

Where the money can come from

Contributions

🧑 You

Your own contributions.

💼 Employer

Employer contributions, when applicable.

🏛️ Government

Government contributions, when eligible.

We won't go into exact contribution rates or payment amounts here — they can change over time.

Not just sitting as cash

KiwiSaver money is invested

📈
Shares
📄
Bonds
🏠
Property
💵
Cash

Different KiwiSaver funds can invest in different mixes of these — this is just an introduction to the idea.

Why it connects to earlier lessons

A real example of long-term thinking

KiwiSaver demonstrates why starting to save and invest early can give money a long time to potentially grow — the same ideas covered in Long-Term Investing and Compound Growth.

KiwiSaver isn't guaranteed growth. Like any investment, its value can rise and fall.

Not always available

Access rules

KiwiSaver is designed for long-term saving, and there are rules about when you can access the money. Those rules can change over time, so we won't go into specifics here.

Try it yourself

A lifetime of contributing

Age 20
Start saving
Age 30
Keep contributing
Age 40
Keep contributing
Age 50
Keep contributing
Age 60+
Many years to grow
Why might starting earlier give money more time to grow?

More years means more time for contributions to build up and for any investment growth to compound on itself, the way we saw in Compound Growth.

For parents

This lesson is about understanding the concept, not making decisions about KiwiSaver. You're welcome to explain your own KiwiSaver contributions if you're comfortable doing so.

Keep going

Where to next

More on long-term investing and compound growth.

Ready to keep learning?

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