KiwiSaver When Starting a New Job in NZ: Your Day-One Checklist

Starting a new job in NZ? A plain checklist for KiwiSaver: auto-enrolment, carrying your fund over, the KS1 and KS2 forms, default-fund traps, and setting your rate and PIR from day one.

A new job in New Zealand comes with a stack of paperwork, and KiwiSaver is usually buried somewhere in it. Most people sign the forms without much thought and get on with the actual job. That's understandable, but the first week is when a few small decisions are easiest to get right - and easiest to get wrong by default. This is a plain checklist for what happens to your KiwiSaver when you start, and the handful of things worth checking before they're set for you.

TL;DR: If you're aged 18 to 64, starting a new job usually means automatic enrolment in KiwiSaver, with an opt-out window of day 14 to day 56 ¹. If you're already a member, your existing fund and balance carry over - you don't open a new account ². Day one is the moment to set your contribution rate and confirm your PIR before the defaults are applied for you.

This article is general information only and is not personalised financial advice. It does not take into account your particular financial situation, goals or needs. Before acting, consider whether it's right for you and seek advice tailored to your circumstances.

Are you automatically enrolled when you start a new job?

For most people, yes. New permanent and fixed-term employees aged 18 to 64 who start a new job are automatically enrolled in KiwiSaver by their employer ¹. You don't have to do anything for enrolment to happen - it's the default setting, and contributions start coming out of your pay straight away.

Automatic enrolment isn't the same as being locked in. If you decide KiwiSaver isn't right for you at this point, you can opt out, but only inside a set window: between day 14 and day 56 of starting the job - roughly two to eight weeks in ¹. Opt out before day 14 and it's too early; miss day 56 and you generally can't opt out later, though you can apply for a contributions holiday (now called a savings suspension) down the track instead.

A few points worth knowing:

• If you're under 18 or 65 or over, you're not automatically enrolled, but you can usually still join by opting in directly or through your employer.
• If you're already a KiwiSaver member, you're not auto-enrolled again - you simply keep contributing through your existing scheme (more on that below).
• Opting out is a genuine choice, but it means giving up the employer contribution and any government contribution you'd otherwise receive. That's a trade-off worth understanding rather than making by accident.

There's no single "right" answer here. KiwiSaver suits many people, but whether to stay in depends on your wider situation - your debts, your income, and what else you're saving for.

Does your existing KiwiSaver fund carry over to a new employer?

Yes. This is the part people most often get wrong in their heads. If you're already a KiwiSaver member, you keep your current scheme and your balance when you change jobs - you do not open a new account, and you don't start again from zero ².

Your KiwiSaver account belongs to you, not to your employer. When you start, you give your new employer your KiwiSaver details so they can route your contributions to your existing scheme, and your saving simply resumes where it left off ². The provider stays the same, the fund stays the same, and the balance stays the same unless you actively decide to change something.

That matters for two reasons:

• You won't accidentally end up with two accounts. New Zealanders have one KiwiSaver account that follows them from job to job.
• You also won't be moved into a new fund just because you changed employer. Whatever fund you were in stays in place - which is good if it suits you, and worth a second look if you've never actually chosen it.

So if you've been in KiwiSaver for years and have never thought about which fund you're in, a job change is a natural prompt to check. Not because anything forces a change, but because it's an easy moment to look. Our guide on how to choose a KiwiSaver fund walks through how to weigh up timeframe, risk and fees.

What KiwiSaver forms do you fill in on day one (KS1, KS2)?

Two short Inland Revenue forms tend to come up when you start, and it helps to know which is which.

In practice, many employers now collect this information through their own onboarding or payroll system rather than handing you paper forms, so you may never see a physical KS1 or KS2. The substance is the same: your employer needs your KiwiSaver status, your IRD number, and your chosen contribution rate.

The form to pay attention to is the KS2, because that's where your contribution rate is set. If you don't actively complete it, a default rate applies - which brings us to the next point.

What happens if you don't choose a fund or rate?

If you let the defaults run, two separate things happen, and it's worth keeping them apart.

Your contribution rate defaults to the minimum. The minimum employee contribution is 3% of your before-tax pay, and you can choose 3%, 4%, 6%, 8% or 10% ³. If you don't pick a rate, 3% is what's deducted ³. Your employer also contributes a minimum of 3% of your gross pay on top, subject to employer superannuation contribution tax (ESCT) ⁴.

One change to note: from 1 April 2026 the minimum employee and employer rate rises from 3% to 3.5%, and then to 4% from 1 April 2028 ⁵. From 1 February 2026, members can apply to Inland Revenue to temporarily reduce back to 3% if the higher rate is a stretch ⁵.

Your fund defaults to a balanced default fund. If you're auto-enrolled and don't choose your own scheme or fund, Inland Revenue allocates you to one of the appointed default providers, and you're placed in that provider's balanced default fund until you make an active choice ¹⁰. A balanced fund is a middle-of-the-road option - it isn't reckless, but it also isn't matched to you.

So doing nothing isn't neutral. It quietly sets your rate at the minimum and your fund at a generic balanced option. For some people that's perfectly fine. For others - someone decades from retirement, or someone saving hard for a first home on a short timeframe - it may not be.

Should you stay in your provider's default allocation?

Maybe, maybe not - the point is to decide rather than drift.

A balanced default fund is designed to be a reasonable holding position for a broad cross-section of members ¹⁰. It's deliberately middle-of-the-road. The question is whether middle-of-the-road fits your situation:

• People with a long timeframe (retirement decades away) sometimes find a more growth-oriented fund better matches how long their money has to grow - accepting larger ups and downs along the way.
• People with a short timeframe (a first-home withdrawal coming up soon, or retirement close) sometimes prefer a more conservative fund so a market dip doesn't land at the worst moment.
• The right fund is the one that matches your timeframe and the level of ups and downs you can sit through without bailing out.

The value of investments can go down as well as up, and past performance is not a reliable indicator of future performance. A default fund isn't a mistake - it's just a starting point that nobody chose for your specific circumstances. Our explainer on how default KiwiSaver funds work covers what they hold and how to tell whether yours still fits.

Setting your contribution rate and PIR correctly from the start

Two settings are entirely within your control on day one, and both are easy to leave wrong.

Your contribution rate. You can choose 3%, 4%, 6%, 8% or 10% of before-tax pay ³. Higher rates mean more going in and a faster-growing balance, but also less in your take-home pay each week - so the right rate depends on your budget and your goals, not on a rule of thumb. You can change it later by giving your employer a new KS2; our guide on changing your KiwiSaver contribution rate explains how.

One thing the rate connects to is the government contribution. If you're aged 16 to 65 and have annual taxable income of $180,000 or less, the Government contributes 25 cents for every $1 you put in, up to a maximum of $260.72 per KiwiSaver year (1 July to 30 June) ⁶⁷. To collect the full amount, you need to contribute at least $1,042.86 of your own money in the year ⁶. Members earning more than $180,000 a year no longer receive it ⁷. For most employees on a steady wage, regular contributions cover this comfortably, but it's worth being aware of if your income is irregular.

Your PIR. Your Prescribed Investor Rate (PIR) is the tax rate applied to your KiwiSaver investment earnings. The options for individuals are 10.5%, 17.5% and 28% ⁸:

This one catches people out. If you don't give your provider a PIR (or your IRD number), the default rate of 28% is applied - the highest rate ⁹. An unset or incorrect PIR means you can over-pay or under-pay tax on your KiwiSaver earnings, year after year, without noticing ⁹. Starting a new job, where your income may have changed, is a sensible time to check your PIR is still right. Our guide on what PIR you should be on walks through the thresholds.

KiwiSaver is a long-term savings scheme. Government contributions, contribution rates, withdrawal rules and tax (PIR) settings are set by the Government and can change. Figures are correct as at 29 October 2025. Check current rules at ird.govt.nz, kiwisaver.govt.nz and sorted.org.nz, and the relevant scheme's Product Disclosure Statement.

What if it's your very first job?

If this is your first-ever job and you've never been in KiwiSaver, the auto-enrolment rules above apply in the same way: if you're 18 to 64, you're automatically enrolled, with the day 14 to 56 opt-out window ¹. The difference is that you don't have an existing fund carrying over - so the default allocation to a balanced default fund is what you'll land in unless you choose a scheme and fund yourself ¹⁰.

A few things are genuinely worth a moment when you're starting out:

• You choose your provider and fund, or one is chosen for you. First-timers who don't pick get the default provider's balanced fund ¹⁰. Picking your own scheme means you control who manages your money and which fund you're in.
• Your timeframe is usually long. If retirement is decades away, the fund choice you make early can matter a great deal over time - though, again, the right level of risk depends on what you can sit through and what else you're saving for.
• Set your PIR straight away. On a lower starting income, your correct PIR may be 10.5% or 17.5% ⁸ - so leaving it at the 28% default could mean over-paying tax from the start ⁹.

None of this needs to happen on day one. But knowing the defaults exist means you can choose on purpose rather than have it chosen for you.

Your day-one KiwiSaver checklist

A short list to run through in your first few weeks:

1. Confirm your status. Are you being auto-enrolled (aged 18 to 64), or are you an existing member carrying your account over? ¹²

2. Note the opt-out window if you're auto-enrolled and considering opting out: day 14 to day 56 ¹.

3. Existing members: check the fund you're carrying over still suits you - a job change doesn't move you automatically ².

4. Choose your contribution rate on the KS2: 3%, 4%, 6%, 8% or 10%, with 3% the default ³. Remember the minimum rises to 3.5% from 1 April 2026 ⁵.

5. Decide on your fund rather than drifting into the balanced default ¹⁰.

6. Confirm your PIR so you're not stuck on the 28% default and over-paying tax ⁸⁹.

7. Check you're on track for the government contribution if your income is irregular: $1,042.86 of your own contributions a year, up to a $260.72 top-up ⁶.

If any of those is a "not sure", that's the one to look at first.

Frequently asked questions

Am I automatically enrolled in KiwiSaver when I start a new job in NZ?

If you're a new permanent or fixed-term employee aged 18 to 64, you're generally automatically enrolled in KiwiSaver when you start ¹. You can opt out if you choose, but only within a set window - between day 14 and day 56 of starting the job ¹. People under 18 or 65 and over aren't auto-enrolled but can usually still opt in.

Do I need to open a new KiwiSaver account when I change jobs?

No. If you're already a KiwiSaver member, you keep your existing scheme and balance - you don't open a new account ². You give your new employer your KiwiSaver details and your contributions resume from your existing scheme. Your account follows you from job to job.

What KiwiSaver contribution rate applies if I don't choose one?

The default employee contribution rate is 3% of your before-tax pay ³. You can choose 3%, 4%, 6%, 8% or 10% instead by completing a KS2 form ³. From 1 April 2026 the minimum rises to 3.5%, and to 4% from 1 April 2028 ⁵. Your employer also contributes a minimum of 3% on top of your pay ⁴.

What happens to my fund if I don't make a choice?

If you're auto-enrolled and don't choose your own scheme or fund, Inland Revenue allocates you to a default provider and places you in that provider's balanced default fund until you make an active choice ¹⁰. A balanced default fund is a reasonable starting point, but it isn't matched to your particular timeframe or goals.

Why does my PIR matter when I start a new job?

Your Prescribed Investor Rate (PIR) is the tax rate on your KiwiSaver earnings, set at 10.5%, 17.5% or 28% based on your income ⁸. If you don't provide a PIR or IRD number, the default 28% rate applies - the highest ⁹. Because a new job can change your income, it's a good moment to confirm your PIR is correct so you don't over-pay or under-pay tax.

Can I opt out of KiwiSaver after starting a new job?

If you were automatically enrolled, you can opt out between day 14 and day 56 of starting ¹. Before day 14 is too early, and after day 56 you generally can't opt out, though you can later apply for a savings suspension. Opting out means giving up employer and government contributions, so it's worth understanding the trade-off first.

This article is general information only and is not personalised financial advice. It does not take into account your particular financial situation, goals or needs. Before acting, consider whether it's right for you and seek advice tailored to your circumstances. Craig Smith Business Services Ltd (FSP712931), trading as Smiths Financial, holds a Class 2 licence issued by the Financial Markets Authority to provide financial advice on personal risk insurance, health insurance, general insurance, KiwiSaver and managed funds, and is a member of the Financial Dispute Resolution Service (FDRS). Written by Henry Smith, Financial Adviser; reviewed by Craig Smith, Principal Adviser. Last reviewed 29 October 2025.