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Usually you won't even be asked, or perhaps even be aware that this is happening. Check your payslip for the deduction labelled something like "RV-Beitrag".

The "RV" stands for "Rentenversicherung" which literally translates to "retirement insurance".

All benefits received under NZS are subject to income tax.

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Occupational Pensions In addition to the existing private-sector superannuation schemes, the Kiwi Saver scheme was implemented in July 2007 to complement the pension vehicles available for second pillar pension provision.

In case the required contribution rate of either 4% or 8% is split between the employer and the employee, the full amount vests immediately.

Employers with an existing, approved superannuation scheme may apply for exemption from automatic enrolment into the Kiwi Saver.

To give impetus to the uptake of the Kiwi Saver scheme, the government makes an upfront contribution of NZD 1000 to each individual account.

In addition, it also contributes to paying the saver's ongoing account fees.

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