Kiwisaver

It is very necessary to have savings after retirement for financial independence, to enjoy standards of living in retirement similar to those in pre-retirement. Kiwisaver is an answer to this in New Zealand  similar to  provident fund, gratuity, which are available in India.

KiwiSaver scheme is a New Zealand voluntary long-term savings scheme which came into operation from Monday, 2 July 2007. The main purpose of the KiwiSaver fund is for retirement savings.

A policy initiative of the Fifth Labour Government of New Zealand, it is aimed at improving New Zealand low average rate of saving. It is governed by various Acts of Parliament including the KiwiSaver Act 2006, passed in September 2006.

General guidelines:-  

• Employee participants can choose to contribute 2%, 4% or 8% of their gross pay.
• All New Zealanders aged 18–65 starting a new job, withsome exceptions, are automatically enrolled in KiwiSaver.
• Employee  can choose to opt out from day 14 to day 56 of their employment.
• From 1 April 2008 employers have to make matching contributions starting at a minimum of 1% of the employee's gross salary.

Funds withdrawal before retirement
 
As Kiwisaver fund is for retirement savings, money is normally withdrawal when you are eligible for government superannuation, currently 65, or after five years, whichever is longer. You may need to withdrawal money before your retirement, provision for this has been made in Schedule 1 of KiwiSaver Act 2006 for. 
I have made a small diagram to explain the conditions for funds withdrawal before retirement. Please refer to Kiwisaver act for complete terms and conditions.