Anyone can join a KiwiSaver Scheme. However, you must be living or normally living in New Zealand, be a New Zealand citizen or have permanent residency. There are generous government incentives for everyone; including children, students, employees, self employed, not employed, stay at home spouses and beneficiaries.
You have probably heard a lot about KiwiSaver and retirement in the news over the last few years and should know why it is so important to save for your retirement. The facts are hard to ignore:
If you are employed, please use our contributions table to see what contributions you will need to make toward your KiwiSaver account. If you can't afford the contributions from your pay, you should not join a KiwiSaver scheme. If you are already in a KiwiSaver scheme and are having trouble making contributions, please see the Savings Suspension FAQ section below for information about possibly stopping your contributions. We can also recommend a budgeting service that may be able to help you.
You can access daily fund prices here on our website and keep up-to-date with monthly ‘plain English’ email newsletters, annual reports and audited financial statements. Our members also have private login details to our website so they can always view the full details of their investments, including how much they have saved and transaction information.
As the Trustee, Public Trust has full oversight of your KiwiSaver investment. Public Trust is New Zealand's most enduring trustee organisation. It’s the only Crown entity that acts as a trustee serving the corporate and business market in New Zealand. Providing corporate trustee services to some of the best known names in the finance and investment industry (both locally and internationally). Public Trust’s role is important, as it is the supervisor of your investment in the Scheme. Public Trust does not guarantee the performance of the Scheme or any of the Funds.
The Generate KiwiSaver Scheme will be audited every year, currently our auditor is Grant Thornton New Zealand. Grant Thornton is one of the world's leading organisations of independent assurance, tax and advisory firms. Grant Thornton New Zealand operates from three locations in Auckland, Wellington and Christchurch, with 32 partners and more than 240 professional and management services staff.
We believe that international investment markets are not perfect. Too often human nature, including fear and greed, will drive investment decisions. This creates a market where someone may want to buy or sell assets at a price below or above their fair value. Active management aims to take advantage of those situations.
Active managers rely on analytical research, forecasts, and their own judgment and experience in making investment decisions on what securities to buy, hold and sell. The opposite of active management is called passive management, better known as "indexing", where an investor simply buys a proportion of all the shares in an index, like the NZX50, and will receive the same return as the market.
We have identified market-leading investment managers who have all fashioned outstanding track records over a long period of time. We invest in funds that have substantial funds under management and are run by well-resourced teams of investment managers and research analysts located around the world. Importantly, some of our managers seek positive returns from rising and falling asset prices. After all, the Global Financial Crisis was a timely reminder that asset prices don’t always go up in value.
You will be charged fees for investing in the Scheme. Fees are deducted from your investment and will reduce your returns.
If Generate invests in underlying funds, those funds may also charge fees.
Here are the details on the fees above:
The management fee
We perform management services for the Scheme. The fee for these services is based on the gross asset value of the fund
and is the same no matter which fund or funds you invest in. The fee is calculated daily and paid to us each month. It
reduces each fund’s unit price. Currently the fee is 1% each year.
Other administration charges
(i) Supervisor fees
The supervisor charges a fee for its supervisor and custodial services. The amount of the fee is currently up to 0.07% per
annum each year of the gross asset value of the Scheme. The fee is the same no matter which fund or funds you invest in.
The supervisor’s fee is calculated daily and paid to the supervisor each month. The supervisor may also be paid additional fees
for non-routine matters, as the supervisor and the manager may agree from time to time. Such fees reduce each fund’s unit price.
(ii) Operating and administration expenses
Operating and administration expenses (such as auditing and legal expenses, postage, and other expenses) will be incurred to
operate the Scheme.
It is expected that the maximum expense for members in each fund will be 0.2% of the assets of the fund per annum
(excluding transaction costs e.g. brokerage and buy-sell spreads). To the extent that actual expenses exceed the target, we may
choose not to recover such expenses. Bank charges, currency conversion fees and, where applicable, tax will be deducted
from amounts transferred from foreign superannuation schemes before they are converted into units.
Underlying fund fees
The Growth Fund and the Focused Growth Fund invest into underlying funds.
Most of the managers of these funds will charge fees for investing the Scheme’s money and may change the fees they charge
from time to time. These fees will affect the value of these funds’ investments, and will be reflected in the Growth Fund’s and the
Focused Growth Fund’s unit price. The underlying funds’ fees will differ depending on the products into which we decide to invest.
There are two types of fees charged by underlying managers:
(i) Base fees
The underlying funds’ base fees provided in the summary of regular charges reflect the total estimated charges for management
fees from the underlying funds.
(ii) Performance fees
The underlying funds’ performance fees provided in the summary of regular charges reflect the total estimated charges for
performance fees from the underlying funds.
We have delegated the performance of certain administration management functions for the Scheme (including registry) to
MMC Limited (MMC). We and MMC are reimbursed from the Scheme’s assets for the day-to-day administration of members’
balances and for maintaining the member register for the Scheme. Currently the fee is $36 per member per year paid
monthly in arrears ($3 per member per month). This is a Scheme fee and not a per fund fee, therefore you will pay the
same fee no matter how many funds you are invested into.
‘Stepping Stones’ and ‘Stepping Stones Growth’
If you choose either the ‘Stepping Stones’ or ‘Stepping Stones Growth’ investment option you will pay the fees applicable to
the funds you are automatically invested into. There are no additional fees for being invested in either of the Stepping Stones
Example of how fees apply to an investor
Hannah invests $10,000 in the Growth Fund. She is not charged an establishment fee or a contribution fee.
This means the starting value of her investment is $10,000. She is charged management fees, which work out to about $154 (1.54%
of $10,000). These fees might be more or less if her account balance has increased or decreased over the year.
Over the next year, Hannah pays other charges of $36.
Estimated total fees for the first year
Fund charges: $154
Other charges: $36
See the latest fund update for an example of the actual returns and fees investors were charged over the past year.
This example applies only to the Growth Fund. If you are considering investing in other funds or investment options in the
Scheme, this example may not be representative of the actual fees you may be charged.
The fees can be changed
We may agree with the Supervisor to vary the fees from time to time. Fees not currently charged, may also be introduced at any
time as permitted by the trust deed. However, any changes in fees will be subject to the ‘reasonable fees’ restrictions outlined
in the KiwiSaver Act.
We must publish a fund update for each fund showing the fees actually charged during the most recent year. Fund updates,
including past updates, are available at generatekiwisaver.co.nz/fund-updates.
The Product Disclosure Statement sets out the risks of the Scheme. Some of these are listed below.
The funds invest in different classes of assets, each with different risks attached to them. Funds that invest in shares will generally have higher levels of risk attached to them. For all assets there is the risk that the asset will not perform to the target rate of return and your returns will be lower than anticipated (or even negative for a period of time).
Tax and regulatory risk
Changes in the tax rates and tax rules of New Zealand and in countries in which investments are made by the funds could adversely affect your investment. In addition, changes to the KiwiSaver regime and government incentives could adversely affect your investment.
Investment markets are affected by a range of social, political and economic factors, in both New Zealand and internationally that may impact share prices, property values and interest rates, which could adversely affect your investments.
If the assets of a fund become illiquid then the fund may be unable to sell those assets which would affect that fund’s ability to make payments on time.
Derivatives may be used as a risk management tool by the funds and IEMs and as an alternative to investing in a physical asset by the IEMs. Derivatives may not perform as expected and may result in increased volatility and unexpected gains or losses.
Other specific risks
Underlying fund risk
The Growth Fund and Focused Growth Fund both invest in IEMs. Some of the IEMs that these funds invest into may also use commodities, derivatives, currencies, fixed interest and other securities to help them achieve their investment strategies. Most of these managers are able to suspend withdrawals from their funds in limited circumstances. This could result in the funds being unable to make payments on time.
Foreign exchange risk
When the funds invest in international investments foreign currency movements could affect the investment performance of the funds. We actively manage the Foreign Exchange Risk and typically enter into foreign exchange transactions, a practice known as ‘hedging’.
We take our Anti-Money Laundering/Countering Financing of Terrorism responsibilities very seriously and as a result have put in place robust processes and procedures so that Generate can play its part in this important endeavour.
Please contact us to find out more.
Step 1: Open the Generate homepage (www.generatewealth.co.nz) on your phone browser. On the iPhone, you need to use Safari.
Step 2: Click the 'sharing' icon which is the box with the arrow at the bottom of the page on Safari.
Step 3: Find 'Add to Home Screen' option. You may have to scroll down to find this option.
Step 4: Save with the title 'Generate'. It may auto-populate as shown below in which case you can just delete the words '- Homepage'.
Step 5: If the Generate 'G' shows up on the phone home screen then you are done!
Step 1: Open the Generate homepage (www.generatekiwisaver.co.nz) on your phone browser. On Android common options are Chrome or Firefox.
Step 2: Click the 'Add to home screen' option which is in the menu which drops down from the top right of the screen.
Step 4: Save with the title 'Generate'. It may auto-populate as shown below in which case you can just delete '- Homepage'.
Step 5: If the Generate 'G' shows up on the phone home screen then you are done!
Yes we do and you can read it here Generate Responsible Investment Policy. We are also a signatory to the United Nations Principles for Responsible Investment.
Yes, everyone under 65 who is living (or normally living) in New Zealand, and is a New Zealand citizen or permanent resident can join, and we welcome children. It’s a great way to save for their first home and to teach them the importance of saving along the way. However, since the Government removed the $1,000 kick-start contribution there are no incentives for children under 18 to join. If you are not making contributions to your child's account then KiwiSaver is not recommended for under 18's.
Is your child aged 16 or 17?
– If your child is already a member of a KiwiSaver scheme, or is married, in a civil union or de facto relationship, then they can sign alone.
– Otherwise both your child and one of their parent(s) or guardian(s) are required to sign the application.
– Your child will need to verify their identity. Identification is also required for the parent or guardian if they are required to sign the form with your child.
– Your child will also need to provide their IRD number.
Are you aged 15 and under?
– If your child is becoming a KiwiSaver member for the first time, both of their parent(s) or all of their guardian(s) are required to sign the application.
– If your child is already a member of a KiwiSaver scheme, one of their parent(s) or guardian(s) can sign if they have consulted and are acting in agreement with the childs other parent or all of the childs other legal guardian(s).
– Your child will need to verify their identity. Identification is also required for the parent(s) or guardian(s) who are signing.
– Your child will also need to provide their IRD number.
Yes, everyone under 65 who is living (or normally living) in New Zealand, and is a New Zealand citizen or permanent resident, can join, and we welcome stay at home mums and dads. You will get exactly the same benefits as anyone who is self employed or not employed: up to $521.43 per year Government Contribution (50 cents for every dollar you contribute. To get the maximum Government Contribution you will need to be a KiwiSaver member for the full year and contribute $1,042.86. If you are over 18 but under the Retirement Age (and meet certain other criteria) you may be able to take advantage of the first-home withdrawal opportunity and, if you’re eligible, the HomeStart grant from Housing New Zealand.
Everyone should save for their retirement and as a couple it makes sense for you to both contribute to a KiwiSaver Scheme as you may both receive the KiwiSaver benefits and enjoy more for your retirement together.
Once we have processed your application we will notify the IRD. The IRD will then send your employer a letter telling them you have joined a KiwiSaver Scheme and to start making contributions, how much to contribute and when to start contributing.
This process may take time so if you want to avoid any delays please tell your employer you have joined and to start making deductions – if they have any questions they can call us on 0800 855 322 or IRD on 0800 549 472.
All KiwiSaver scheme applicants need to have copies of their documents certified by an Approved Person (see the list below) as being a true copy of the original document and that they represent the identity of the applicant or parent/guardian.
Approved persons who are able to certify:
Approved persons must be over the age of 16 and cannot be:
The original form of identification must be viewed by the Approved Person who then compares it with a photocopied, scanned or photographed version. The Approved Person then signs and dates the copy and prints their name and occupation alongside the following statement:
"I certify this to be a true copy of the original document and confirm that it represents the identity of (full name of applicant or parent/guardian)."
This certification can also be made on the application form under Certification of Identity in the Adviser information section.
Certification must have been carried out in the 3 months prior to the presentation of the copied documents. If you already have certified documents within this time frame, they will be acceptable. Certified copies must be entirely legible and the photos clear.
Your PIR is your Prescribed Investor Rate which is the tax rate applied to any income attributed to your Generate KiwiSaver Scheme account. Because the Generate KiwiSaver Scheme is a Portfolio Investment Entity (PIE) we calculate and pay the tax owing from your KiwiSaver account for you. This makes it easy for you and we will send you a tax statement every year setting out how much tax you have paid.
Your PIR tells us at what rate we should pay the tax on your account. The PIR rates are different from your normal income tax rate so if you don’t know your PIR, you need to find out. Either ask your accountant, call the IRD on 0800 227 774 or please see our page Working out your Prescribed Investor Rate (PIR). You can also go to the IRD website for more information.
It is important to get your PIR right. Please tell us as soon as possible if your PIR changes. If your PIR is too low you may have more tax to pay and if your PIR is too high you may end up paying too much tax from your KiwiSaver account which you will not be able to get back.
“Most investment professionals agree that, although it does not guarantee against loss, diversification is the most important component of reaching long-range financial goals while minimizing risk”*.
The simplest example of diversification is provided by the proverb "Don't put all your eggs in one basket". Dropping the basket will break all the eggs. Placing each egg in a different basket is more diversified. There is more risk of losing one egg, but less risk of losing all of them.
Our strategy spreads the risk of investing across a number of investment managers, investment strategies and markets. We further diversify your savings by combining property, infrastructure, international equities, fixed interest, and cash assets with our chosen investment funds to create our Growth Fund. The Focused Growth Fund is similar to the Growth Fund except that it has a higher weighting of international equities investments and a lower weighting of fixed interest investments. We also offer a conservative Fund that invests in these same property, infrastructure, fixed income and cash assets. The Conservative Fund also holds direct investments in international equities.
*Investopedia “The importance of diversification”
If you are an employee, you can choose to put in 3% (the default rate if you don’t make a choice), 4%, 6%, 8% or 10% of your Before Tax Pay. The amount of your contributions is deducted from your after-tax pay.
In cases where you are employed, over 18 and yet to reach your Retirement Date, your employer will top up your contribution with a contribution at the minimum employer rate, currently 3% of your Before Tax Pay. Employer Superannuation Contribution Tax is deducted from employer contributions.
People who are self-employed, not employed or under 18 and not employed can choose how much they want to put in and when.
If you are self employed, or not employed, there is no minimum initial investment. It is your choice to contribute and a good way to do that is by direct debit. You can fill out a Generate KiwiSaver Scheme Direct Debit Form with the application.
If you are employed, you will have to contribute 3%, 4%, 6%, 8% or 10% of your gross salary or wages. If you contribute, your employer generally will also contribute 3% (if you are over 18 but under Retirement Age and meet certain other criteria)*, and for every dollar that you pay into the Generate KiwiSaver Scheme up to $1,042.86, the government will contribute $0.50c (up to a maximum of $521.43) (see Government Contribution if you are over 18 but under Retirement Age and meet certain other criteria)*.
If you are employed and you do not want to continue contributions to your KiwiSaver account you may be able to go on a savings suspension for up to 1 year. You can choose to start making contributions again at anytime. On a savings suspension you do not have to contribute to your KiwiSaver account. However, in this instance you will not receive the Government Contribution or your employer’s contribution. (You can still receive the Government Contribution if you make voluntary contributions - not out of your salary or wages - while you are on a savings suspension).
*Conditions apply – see the Product Disclosure Statement for details.
Yes, however you will not be eligible for the Government Contribution, whilst you are not a resident in New Zealand.
No. The KiwiSaver Act specifically excludes KiwiSaver contribution deductions from redundancy payouts.
You may be able to make a withdrawal, not including the $1000 Kickstart and any Government Contributions, if the Trustee is reasonably satisfied that you are suffering or likely to suffer from significant financial hardship.
Significant financial hardship includes difficulties arising because of:
The Trustee must be reasonably satisfied that you have exhausted other reasonable means of finding money and may limit the amount of money you receive to what it thinks is required. If you choose to make a withdrawal of this kind, you will need to provide a statutory declaration as to your assets and liabilities.
To start the process, please call us on 0800 855 322. We will liaise with the Trustee about your application.
If you are employed and you do not want to continue contributions to your KiwiSaver account you may be able to go on a savings suspension for up to 1 year. On a savings suspension you do not have to contribute to your KiwiSaver account. However, if you do not contribute you will not receive the Government Contribution or your employer’s contribution. (You can still receive the Member Tax Credit if you make voluntary contributions - not out of your salary or wages - while you are on a savings suspension.)
If you are an employee, you may apply to Inland Revenue to suspend your contributions to the Scheme if:
If a savings suspension is granted based on financial hardship, its duration will be three months (unless Inland Revenue agrees to a longer period). The duration of a savings suspension will otherwise be between three months and one year (unless your employer agrees to a shorter period). Inland Revenue will notify you before your savings suspension ends and you may apply for a new savings suspension.
You may resume contributing at any time by giving notice to your employer, requiring the employer to start making deductions from your salary or wages.
To apply please complete a Savings Suspension Request Form and send it back to the IRD as detailed on the Form.
You may make a withdrawal of all of your investment from the Scheme if the Trustee is reasonably satisfied that you are suffering from a serious illness. You will need to provide medical evidence to support any request.
Serious illness means an injury, illness or disability that:
You may withdraw your money from the Scheme (excluding any Government Contributions) one year after you have permanently emigrated from New Zealand (except if you are moving to Australia - see below). Your Government Contributions are repaid to Inland Revenue.
Alternatively, at any time after you have permanently moved overseas (except to Australia - see below), you may direct us to transfer your investment (excluding your Government Contributions) to an overseas superannuation scheme authorised for that purpose by regulations made under the KiwiSaver Act.
Your Government Contributions in either circumstance will be repaid to Inland Revenue.
To do this you will need to complete a statutory declaration stating that you have permanently emigrated from New Zealand. You must also prove to our satisfaction your departure from New Zealand, and that you have resided at an overseas address at some time during the year following your departure from New Zealand. Contact us for more information by email at firstname.lastname@example.org or by calling us on 0800 855 322.
Moving to Australia
If you permanently emigrate to Australia:
If you pass away, all of your investment in the Scheme will be paid, to your personal representatives on request.
This means your KiwiSaver savings will go to the beneficiaries of your estate.
There are typically two stages in life where you can make a withdrawal:
Having said that you may also be able to make an early withdrawal based on significant financial hardship, serious illness or permanent emigration. (Note: It is possible for your estate to make a withdrawal after you pass away.)
*Some conditions apply. Please contact us for further details by email to email@example.com or by calling us on 0800 855 322.
The following people are authorised under New Zealand law to witness statutory declarations made in New Zealand. You will need to sign a statutory declaration in front of one of these people when you apply for a withdrawal such as a first home withdrawal or retirement withdrawal.
A statutory declaration must be made before:
- a person enrolled as a barrister and solicitor of the High Court
- a Justice of the Peace
- a notary public
- Registrar or Deputy Registrar of the Supreme Court
- Registrar or Deputy Registrar of the Court of Appeal
- Registrar or Deputy Registrar of the High Court or a District Court
- a member of Parliament
- some other person as authorised by law
Generate is able to accept statutory declarations made in Australia and witnessed by someone authorised to do so under Australian law.
Please contact us on 0800 855 322 or firstname.lastname@example.org if you have any further questions.
If you have a complaint about the Generate KiwiSaver Scheme, please contact:
Chief Executive Officer
Generate Investment Management Limited
PO Box 91609
Victoria Street West
You may also make a complaint about the Scheme to the Trustee:
34 Shortland Street
If we, or the Trustee, are unable to resolve your complaint, you may contact our external dispute resolution scheme. This is a free service. We are members of the Financial Services Complaints Limited Scheme
Financial Services Complaints Limited
101 Lambton Quay
PO Box 5967
You may also make a complaint to the Financial Markets Authority.
DX Box CX10033
PO Box 106 672
PO Box 1179
Level 5, Ernst & Young Building
2 Takutai Square, Britomart
Level 2, 1 Grey Street
I wish to apply for membership of the Scheme for me, or, where indicated, for my child or dependant. I confirm that I have received, read and understood the current Generate KiwiSaver Scheme Product Disclosure Statement dated 31 August 2019 and agree to be bound by the terms and conditions set out in the Product Disclosure Statement and Trust Deed governing the Scheme. I understand that if a transaction request is invalid or insufficient information is provided, it will not be processed until valid documentation is received. I understand that, if I am a member of another KiwiSaver scheme, my balance in that KiwiSaver scheme will be transferred to the Scheme if my application is accepted. I authorise the manager or supervisor of that KiwiSaver scheme to provide the Manager or Supervisor of the Scheme with personal information about me as necessary to complete the transfer. I understand that neither the Manager nor the Supervisor has represented or implied that any particular fund or investment strategy is appropriate for my particular circumstances. I understand that investments in the Scheme are subject to investment risk and that the value of my investment may rise and fall from time to time. I understand that the distributor through which I joined the Scheme (if applicable) may be remunerated by the Manager for distributing the Scheme. I acknowledge that none of the Manager, the Supervisor and any distributor through which I joined the Scheme will be liable to me for any loss as a consequence of them accepting or acting on instructions from me or an authorised signatory in respect of my membership in the Scheme (and that none of the Manager, the Supervisor, or any other person (including the Crown) guarantees the performance of the Scheme or the repayment of any money payable from the Scheme). I confirm that I meet the eligibility criteria for joining the Scheme as set out on page 6 of the Product Disclosure Statement and that all of the information in this application form is true and correct. I agree to notify the Manager immediately if there is any change in the information given in this application form.
By submitting this Application Form I consent to receive all forms of information and communication including account information, confirmation information, newsletters, Scheme annual reports, annual member statements and annual tax certificates by any form of communication including email or other electronic means. I agree, pursuant to the Unsolicited Electronic Messages Act 2007, that the person sending any such message need not include a functional unsubscribe facility in the message. Telephone calls may be recorded for training purposes or to provide security for transactions by the Manager, its related companies or agents. I confirm that I have read and I accept the “Declarations” in the above section.
And/Or if submitting on behalf of an applicant under 18, I confirm that I am a legal Parent or Guardian of the applicant. I confirm that I have read and accepted the “Declarations” in the above section on behalf of the applicant. If I am the only person signing as a parent or guardian, I confirm that I am the sole legal Parent or Guardian. If the applicant is aged 16 or 17 and becoming a KiwiSaver member for the first time, only one parent/guardian is required to sign along with the applicant. If the applicant is aged 16 or 17 and is already a member of a KiwiSaver scheme; or is married, in a civil union or a de facto relationship, the applicant alone can sign. If the applicant is aged 15 and under and becoming a KiwiSaver member for the first time, all parents/guardians must sign. If the applicant is aged 15 and under and is already a member of a KiwiSaver scheme, one parent or guardian can sign, provided they have the consent of all of the applicant’s other parent(s)/guardians(s).