5 Tips to Boost Your KiwiSaver First Home Deposit

Here are five tips for boosting your KiwiSaver for your first home deposit:

Tip 1: Increase Your Contributions

Currently, the minimum contribution rate is 3% of your gross (before tax) salary or wages, but you can choose to contribute up to 10%. Increasing your contributions can make a significant difference in the long run. And in addition to your contributions, employers are required to contribute close to 3% of your gross salary.

To change your contribution rate:

• If you are employed: Speak to your employer - notify them in writing of the change, or complete a new KS2 form (which you can get from your employer)
• If you are not employed: Contact your KiwiSaver provider

Tip 2: Review Your Fund Choice

It's essential to review your KiwiSaver settings and ensure that you are in the right fund. Different funds have varying levels of risk and return, and fees, so it's crucial to choose one that aligns with your investment goals and risk appetite.

For example, if you're looking to buy a home within the next few years, you may want to choose a conservative or balanced fund with lower risk. On the other hand, if you have a longer time horizon, you may be comfortable with a higher risk fund with potentially higher returns.

Once you've decided on a new fund, it's easy to switch, whether this is to an entirely new provider or to another fund with your current provider. To join another KiwiSaver provider, simply contact them directly and they'll do most of the work to get everything sorted for you.

Tip 3: Make Voluntary Contributions

You can do this by making lump-sum payments or setting up regular contributions outside of your regular KiwiSaver contributions.

These additional contributions can be especially beneficial if you have a lump sum of money from a windfall, inheritance, or bonus at work. Even small regular contributions, such as $20 per week, can add up over time.

Tip 4: Check Your Tax Rate

This can be especially important if you're self-employed or have multiple jobs. To work out the Prescribed Investor Rate (PIR) that applies to you, go to "Find my prescribed investor rate" on the IRD website. Once you've worked out your PIR, check with your provider to ensure they've got the correct rate loaded.

If you're paying too much tax, you may be missing out on potential returns on your contributions. On the other hand, if you're not paying enough tax, you may have to pay the difference at the end of the tax year.

Tip 5: Maximise the Member Tax Credit

The government offers a member tax credit of up to $260.72 per year to KiwiSaver members who contribute at least $1,042.86 per year (by mid June). This was reduced from $521.43 as of 1 July 2025. For every dollar you contribute, the government adds 25 cents, up to this maximum. This is essentially free money, so it's important to ensure that you're contributing enough to receive the full credit.