Jump to content

KiwiSaver for kids

Setting your kids up for their future can include kickstarting their financial journey through investing. Find out more about KiwiSaver for kids and what setting this up early means.

4 minute read

3. Life moments header 1200pxX800px

KiwiSaver offers a simple and effective way to help prepare your children for a more secure financial future. Starting early may give them a valuable head start – the earlier you begin, the greater the potential benefits. Here’s why. 

The power of starting early

The earlier your child joins KiwiSaver, the more time their investment has to grow. Even small, regular contributions can add up over the years. That’s the power of compounding returns – where the returns earned on your investment have the potential to earn returns of their own. Over time, this could make a meaningful difference to your child’s long-term KiwiSaver account balance.

As your child gets older, there are even more potential benefits to staying engaged with KiwiSaver, especially if they become eligible for government contributions.

Government contributions 

Members aged 16 or over may be eligible1 for an annual government contribution to their KiwiSaver account. For every dollar contributed, the Government adds 25 cents, up to a maximum of $260.72 each year. 

See how it works 

Let’s have a look at what could happen when we bring together the power of starting early, investing consistently, and maximising government contributions. Before we get into the example below2, it’s important to note that we have not included employee and employer contributions, which would significantly boost the estimated KiwiSaver balance at age 65. 


While the figures in this simplified example are estimates (see assumptions below2), they highlight how starting early with regular contributions could lead to better outcomes over the long term. 

Family involvement and preparing for adulthood 

KiwiSaver can also be a practical way for family members – such as grandparents or relatives – to contribute to your child's future. Whether through birthday gifts, special occasions, or regular contributions, every dollar helps to build their savings.

When your child grows older and starts earning their own income, having an established KiwiSaver account will make the transition to adulthood that little bit easier. They'll be ready to benefit from employer contributions, government contributions, and could become more familiar with the discipline of regular saving. 

This early preparation could set the foundation for a strong financial future, and may help ensure your child can make informed financial decisions when it matters most. Whether saving for a first home or preparing for retirement, KiwiSaver could help provide a better future for your child. 

Flexibility and choice 

KiwiSaver is designed to be flexible. As your child grows, their investment choices can evolve to match their changing goals and risk tolerance levels. You generally have the option to select from a range of funds, ensuring your child’s investment approach remains appropriate and effective as their needs develop. 

Professional investment management

KiwiSaver schemes are professionally managed by fund managers, who are licensed by the Financial Markets Authority (FMA). This professional oversight gives you peace of mind that your child’s money is being managed responsibly, with the aim of generating sustainable growth over time. It’s important to note that along the way there will be some ups and downs - risk, like returns, is an everyday part of investing. You can learn more about investment risk here.

Encouraging financial literacy 

KiwiSaver can open the door to useful financial conversations within your family. Discussing the progress and performance of the KiwiSaver account with your child provides an excellent opportunity to educate them on how financial markets work, why certain investment choices are made, and the potential benefits of patience and resilience in investing.

Saving for a first home or retirement

Enrolling your child in KiwiSaver is not merely about building wealth – it's about providing security, choice, and opportunities for the years ahead. KiwiSaver is designed for long-term goals like retirement or buying your first home, so it’s important to note that the money you invest is generally locked away until then. Even modest contributions today can make a big difference tomorrow. 

Important information

1 To be eligible for the KiwiSaver government contribution, you must be:

·         16 years or older

·         earning $180,000 or less per annum

·         not yet eligible for retirement withdrawals

·         mainly living in New Zealand. You may also qualify if you are a Government worker, charity worker, or volunteer working outside of New Zealand.

For more information on the Government contribution, visit the Government’s KiwiSaver website.

2This is a fictional example for illustrative purposes only. The results are based on projections from the BNZ KiwiSaver Scheme calculator, which can show how making changes to your fund or contribution rate could grow your KiwiSaver balance and the income you have in retirement. 

The calculator is based on several assumptions shown below.

How the BNZ KiwiSaver Scheme calculator works:

A. The ‘amount saved’ value is in today’s dollars so you can compare with the cost of living today.

B. The results obtained through the calculator are not guaranteed to occur, and the calculator is simply a tool to help you understand how choices you make may affect the value of your KiwiSaver savings and retirement income.

C. The financial results are for illustration only and are based on several assumptions. The results are therefore unlikely to reflect your actual balance or your actual retirement income. For example, actual investment returns may be different, and are likely to move up and down due to investment and other risks. Returns may be negative over some time periods.

D. This calculator is not intended to provide financial advice. Accordingly, the results should be treated as a guide only and not as financial advice. ​

E. The retirement projections in this calculator are based on assumptions set by the Government. As such, they vary from the assumptions used in the BNZ KiwiSaver Scheme Navigator tool, which are set by the Manager of the BNZ KiwiSaver Scheme. A summary of the Government’s assumptions is provided below, however, further details can be found on the Financial Markets Authority website.

F. To the extent permitted by law, neither BNZ nor any of its related parties accept any responsibility or liability arising from the use of this calculator.

G. References to third party websites are included for convenience only. BNZ (including any of its related parties) do not accept any responsibility for the availability and content of such websites.

The balance and income calculations of this example shown use the BNZ KiwiSaver Calculator, and are based on the following assumptions

  1. Joshua continues to make regular voluntary contributions each year until the age of 65.
  2. Joshua does not withdraw any amounts for first home purchase or financial hardship.
  3. Joshua qualifies for the maximum Government contribution of $260.72 every year between age 16 and 65.
  4. Joshua remains in his chosen fund until age 65.
  5. The rate of return for the High Growth Fund is based on which fund type it aligns with, please see the BNZ KiwiSaver calculator assumed rate of return for more information.
  6. The projections are adjusted for inflation, and the inflation assumption is currently 2% per annum.

BNZ KiwiSaver Scheme

Find out more

This article is solely for information purposes and is not intended to be financial advice. If you need help, please contact BNZ or your financial adviser. Neither BNZ nor any person involved in this article accepts any liability for any loss or damage whatsoever which may directly or indirectly result from any information, representation, or omission, whether negligent or otherwise, contained in this publication.

BNZ Investment Services Limited, a wholly owned subsidiary of Harbour Asset Management Limited, is the Issuer and Manager of the BNZ KiwiSaver Scheme. Download a copy of the BNZ KiwiSaver Scheme Product Disclosure Statement PDF 1.1MB, or pick up a copy from a BNZ branch.

Investments in the BNZ KiwiSaver Scheme are not bank deposits or other liabilities of Bank of New Zealand (BNZ) or any other member of the National Australia Bank Limited group. They are subject to investment risk, including possible delays in repayment. You could get back less than the total contributed. No person (including the New Zealand Government) guarantees (either fully or in part) the performance or returns of the BNZ KiwiSaver Scheme or the repayment of amounts contributed. National Australia Bank Limited, the ultimate owner of BNZ, is not a registered bank in New Zealand but a licensed bank in Australia and is not authorised to offer the products and services mentioned on this webpage to customers in New Zealand.

BNZ Investment Services Limited (BNZISL) uses the BNZ brand under licence from Bank of New Zealand, whose ultimate parent company is National Australia Bank Limited. No member of the FirstCape group (including BNZISL) is a member of the NAB group of companies (NAB Group). No member of the NAB Group (including Bank of New Zealand) guarantees, or supports, the performance of any member of FirstCape group’s obligations to any party.