How to Opt Back Into KiwiSaver After Opting Out in NZ: Restarting Contributions

Opted out of KiwiSaver and want back in? Here is how to rejoin in NZ, when employer and government contributions restart, and what the time out really cost you.

A lot of people opt out of KiwiSaver early in a job when money is tight, then later wonder whether they can get back in. The good news is that opting back in is straightforward, there is no penalty, and your employer and the government start helping again once you are contributing. This guide walks through how to rejoin, when the contributions restart, and roughly what the time out cost you.

TL;DR: You can opt back into KiwiSaver at any time, with no waiting period, by telling your employer, contacting a scheme provider, or going through Inland Revenue ². Once you are contributing again through PAYE, compulsory employer contributions of at least 3% restart, and you again qualify for the government contribution of up to $260.72 a year ³⁷.

What is the difference between opting out and a savings suspension?

These two things get muddled, and the distinction matters for how you get back in.

Opting out is only available to new employees who are automatically enrolled. If you are 18 or over and start a new job, your employer enrols you and deductions begin. You then have a short window, between day 14 and day 56 of starting that job, to opt out and have those early deductions refunded ¹. Miss that window and you cannot opt out of that enrolment.

A savings suspension (formerly called a contributions holiday) is different. It is for existing members who are already contributing and want to pause for a while. You stay a KiwiSaver member the whole time; you have simply paused your own deductions. Our explainer on the KiwiSaver savings suspension covers how that works.

If you paused rather than opted out, you do not need to "rejoin", you just restart deductions. The rest of this article is mainly for people who genuinely opted out.

Can you rejoin KiwiSaver after you opted out?

Yes. Opting out of one auto-enrolment does not lock you out of KiwiSaver. You can opt back in, or join for the first time, at any time, and there is no stand-down or waiting period after a previous opt-out ².

A couple of things are worth knowing. If you opted out of a particular job, your deductions for that job stay off unless you choose to rejoin. And opting back in is a deliberate step, it does not happen automatically just because you change jobs or your pay goes up. You have to ask for it.

How do you opt back in, through your employer or IRD?

There are three routes back in, and they all lead to the same place ²:

1. Tell your employer. This is usually the simplest if you are an employee. Let your payroll or HR contact know you want to start KiwiSaver deductions, and choose a contribution rate. Deductions then come out of your next available pay.

2. Contact a KiwiSaver scheme provider directly. You can apply to join a specific scheme, for example Simplicity, Booster, Milford, Kernel, Generate or your bank's scheme. The provider sets up your membership and account.

3. Go through Inland Revenue. You can opt in via IRD, who will allocate you to a scheme if you have not chosen one.

If you do not already have a KiwiSaver account, or you are not sure where your old one sits, route two or three sorts that out. If you do have an existing account and just want deductions flowing again, telling your employer is usually quickest.

One practical note: when you opt back in through PAYE, you also pick a contribution rate. If you do not choose one, the default minimum rate of 3% applies ⁶. More on rates below.

When do employer contributions restart after you rejoin?

Once you are contributing again through PAYE, compulsory employer contributions of at least 3% of your gross (before-tax) pay restart automatically, subject to the standard eligibility rules (generally ages 18 to 65) ⁷. You do not have to negotiate this separately; it follows from your own contributions starting again.

A few details worth holding onto:

• Employer contributions are paid on top of your own, then have ESCT (employer superannuation contribution tax) deducted before the net amount lands in your account ⁷.
• The minimum employer rate is 3% now, scheduled to rise to 3.5% from 1 April 2026 and 4% from 1 April 2028 under Budget 2025 changes ⁸.
• If you are self-employed or not on PAYE, there is no employer to contribute, so this part does not apply to you. You can still contribute voluntarily and still qualify for the government contribution.

For many people, the employer match is the single biggest reason restarting is worth it. Pausing your own 3% also pauses your employer's 3%, so you are effectively turning down money that is part of your total remuneration.

Do you qualify for the government contribution again straight away?

Once you are contributing again, your own contributions count towards the annual government contribution, with no separate re-application ³. The mechanics are the same as for any other member.

• The government adds 25 cents for every $1 you contribute yourself, up to a maximum of $260.72 per KiwiSaver year (1 July to 30 June) ³. This is the rate in effect from 1 July 2025 after Budget 2025, down from the previous 50c per $1 and $521.43 maximum ³.
• To get the full $260.72 you need to contribute at least $1,042.86 of your own money in the KiwiSaver year ⁴. Only your employee or voluntary contributions count, not your employer's contributions, past government contributions or Australian-scheme transfers ⁴.
• To be eligible you generally need to be aged 18 to 65 and mainly living in New Zealand. From 1 July 2025, 16- and 17-year-olds who contribute also became eligible, while members earning more than $180,000 a year are no longer eligible ⁵.

The timing point that catches people out is the KiwiSaver year. The government contribution is worked out for the year ending 30 June, and it is only paid on what you actually put in during that year. If you rejoin partway through, you only have until 30 June to reach $1,042.86 for that year. Our guide to the government contribution top-up deadline explains how to check whether you are short and what a one-off voluntary top-up can claw back.

What did opting out actually cost you in compounding?

This is the part that is easy to underestimate. The cost of time out is not just the contributions you skipped, it is the growth those contributions would have earned over the decades until retirement.

The chart below illustrates the gap. It models a 30-year-old who stays in KiwiSaver versus one who opts out for three years and then rejoins, with both contributing at the same rate afterwards, projected to age 65.

The cost of three years opted out: balance gap by retirement

Two-line projection chart. Modelled from IRD contribution rates and long-run KiwiSaver returns, 2026. This is an illustration based on stated assumptions, not a prediction, and actual results will differ.

The shape is the point: the gap does not stay the size of the missed contributions, it widens, because the early money has the longest time to compound. Three years out in your thirties is more expensive at 65 than three years out in your sixties, because those early dollars would have grown the longest.

That said, the right response is not panic. You cannot retroactively contribute for years you missed, and chasing them with an uncomfortably high rate can do more harm than good if it strains your budget. Restarting at a sustainable rate, and staying in, is what closes most of the gap.

Choosing a fund and rate when you restart

Rejoining is a natural moment to check two things you control: your contribution rate and your fund type.

Contribution rate. When you contribute through PAYE, your rate must be one of 3%, 4%, 6%, 8% or 10% of your gross pay, and the default if you do not choose is 3% ⁶. A higher rate puts in more of your own money and, up to the cap, helps you reach the $1,042.86 needed for the full government contribution. The trade-off is take-home pay, so the rate has to fit your actual budget.

Fund type. KiwiSaver funds range from defensive and conservative through to balanced, growth and aggressive. Broadly, funds with more shares tend to have higher long-run returns but bigger ups and downs along the way, while more conservative funds are steadier but usually grow less over long periods. The fund that suits someone depends on their timeframe and how comfortable they are with volatility, not on which fund did best last year. Returns are not guaranteed and the value of your account can fall as well as rise.

If you are weighing this up, our guide on how to choose a KiwiSaver fund walks through the options, and our roundup of common KiwiSaver mistakes covers the ones that quietly cost people the most. Named providers across the market include Simplicity, Booster, Milford, Generate, Fisher Funds, Kernel and the bank schemes; comparing across them, rather than defaulting to whoever you bank with, is usually worth the effort.

Should you rejoin now? A quick decision guide

There is no single right answer, but the factors below tend to drive the decision. This is general information to help you think it through, not a recommendation for your situation.

A reasonable middle path for many people is to rejoin at a rate they can comfortably sustain, capture the employer and government contributions, and revisit the rate when their income improves. Whether that fits you depends on your income, debts, goals and timeframe, which is exactly what personalised advice works through.

Frequently asked questions

Can I opt back into KiwiSaver after I opted out? Yes. There is no waiting period. You can opt back in at any time by telling your employer, contacting a KiwiSaver scheme provider directly, or going through Inland Revenue ².

How long after opting out can I rejoin? There is no stand-down. You can rejoin straight away, or years later, whenever it suits you ². Opting out of one auto-enrolment does not prevent you opting back in.

Do employer contributions start again automatically when I rejoin? If you are an employee contributing through PAYE and meet the standard eligibility rules (generally ages 18 to 65), compulsory employer contributions of at least 3% restart automatically once your own deductions start, paid on top of yours less ESCT ⁷.

Will I get the government contribution again after rejoining? Yes, with no separate application. Your own contributions count towards it, and you can receive up to $260.72 for the KiwiSaver year if you contribute at least $1,042.86 yourself and meet the eligibility rules ³⁴⁵.

What contribution rate can I choose when I opt back in? Through PAYE you can choose 3%, 4%, 6%, 8% or 10% of your gross pay. If you do not choose, the default minimum of 3% applies ⁶. The minimum is scheduled to rise to 3.5% from 1 April 2026 and 4% from 1 April 2028 ⁸.

Is it worth rejoining if I am close to 65? It can still be, mainly because of the employer match and the government contribution while you remain eligible, but the compounding benefit is smaller than for someone with decades to go. The trade-off against your current budget matters more here, so it is worth running the numbers for your situation.

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 and is a member of the Financial Dispute Resolution Service (FDRS). 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 14 August 2025 — check current rules at ird.govt.nz and kiwisaver.govt.nz. Returns are not guaranteed; the value of investments can go down as well as up and you may get back less than you invested. Written by Henry Smith, Financial Adviser; reviewed by Craig Smith, Principal Adviser. Last reviewed 14 August 2025.