KiwiSaver for Children
Give your kids a financial head start.
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If you’re a parent, one question you might have asked yourself is, “Should I start a KiwiSaver account for my children?”
A lot of parents come to me and say, “I’d love to help my children buy their first home when they’re adults.”
That’s a really solid goal.
So, can KiwiSaver help?
In short — YES, IT CAN.
Updated 2 June 2026
When Are Children Eligible To Open a KiwiSaver Account?
As soon as they have an IRD number. So technicaly the day after they are born!
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For most KiwiSaver providers the same application form is used for children and adults. For applications made for under 18s at least one parent will need to have the child's account linked to theirs, and supply ID with the application.
When do the "benefits" of KiwiSaver begin?
The main benefit a child has is time - lots of it. To maximise the power of compound interest contributions made when they are young will grow expotentialy when they are adults.
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The Government contribution of $260.72 starts when a child turns 16. This changed on 1 April 2026 - it used to be 18.
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If a child under 18 starts working, their employer must pay them an employer contribution as long as the child is enrolled in KiwiSaver. These payments are a legal requirement if the child is over 16, and discretionary if younger.
Let's see some real numbers
I’m going to walk you through some software I use with clients to project future KiwiSaver balances. It allows me to factor in many different variables, including the impact of starting at different ages.
If you want to see this on Youtube, push play in the picture at the top of the page.
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For now, I’ll use simple numbers to show how powerful compounding can be for a young person.
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Let’s assume you open a KiwiSaver account for your child at age five.
You put in an initial $100 to get started and choose an aggressive fund, because they’ve got plenty of time before the money is needed.
At age five, your child obviously isn’t earning anything yet, but you contribute $80 per month — about $20 a week.
We’ll then assume that when your child turns 20, they start working in a minimum-wage job. Today, minimum wage is just under $50,000. If we inflation-adjust that out by 15 years, that’s roughly $80,000.
There’s no income coming in until age 20, but regular contributions from you are building momentum. With an aggressive fund and time on their side, by age 19 - before they even start working - their KiwiSaver balance is around $36,500.
If we inflation-adjust that back to today’s dollars, that’s just over $27,500.
Imagine being 19 years old and knowing you already have $27,500 going towards your first home... That’s incredibly motivating.
It also opens the door for real conversations between parents and children about money, compounding, and how wealth actually builds over time - not just in theory, but in practice.
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And realistically, this dramatically improves the chances of that young person buying a home. As we know, house prices have been rising faster than incomes for a long time.
Is it worth starting a KiwiSaver account for your child?
Absolutely! The earlier the better.
This example hasn't even factored in the extra they would have at 20 from part time work done as teenagers, or starting full time work at an earlier age.
If your child then works for five years on a modest income, by the age of 25 they could have a balance of almost $100,000 - or around $67,000 in today's money - towards a first home deposit!
Get grandparents involved. Make contributions birthday and Christmas gifts. Get kids engaged and teach them why this matters, because one day, it really will.
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How Solid Steele KiwiSaver Advice Can Help
At Solid Steele KiwiSaver Advice, I help New Zealanders of all ages make smarter KiwiSaver decisions with real world guidance that is easy to understand.
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This includes:
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Reviewing whether your KiwiSaver fund suits your (and your children's) goals
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Explaining risk in plain English
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Comparing KiwiSaver providers
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Helping you understand withdrawal rules
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Helping you avoid common mistakes
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Creating a strategy that fits your situation
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Many people are surprised how much difference the right KiwiSaver setup can make over time.
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Book a Free KiwiSaver Advice Session
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If you are planning to buy your first home, now is the right time to review your KiwiSaver.
Even small improvements made early can compound into meaningful differences later.
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You can also complete the Discovery Quiz to find out whether your current KiwiSaver knowledge may be holding you back.
Common questions about starting a KiwiSaver for children
Q - Can children have a KiwiSaver account in New Zealand?
A - Yes. Parents or guardians can open a KiwiSaver account for a child. The account stays in the child’s name and can continue growing over time through contributions and investment returns.
Q - Is it worth starting KiwiSaver for children?
A - For many families, yes. Starting early gives compounding more time to work, which can make a significant difference to future savings and first-home opportunities.
Q - Can parents contribute to a child’s KiwiSaver?
A - Yes. Parents, grandparents, and other family members can make contributions into a child’s KiwiSaver account at any time.
Q - What KiwiSaver fund should a child be in?
A - Many people consider growth or aggressive funds for children because they usually have a very long investment timeframe before retirement or a first-home withdrawal.
Q - Can children use KiwiSaver to buy their first home?
A - Yes. KiwiSaver savings may be able to be used towards a first-home deposit when the time comes.
Q - Do children get Government KiwiSaver contributions?
A - Government contributions currently begin once someone turns 16 and meets the eligibility rules.
Q - How much should parents contribute to a child’s KiwiSaver?
A - Even small regular contributions can make a meaningful difference over long periods of time. Consistency and starting early are often more important than contributing large amounts.
Q - Why is compounding important for children’s KiwiSaver accounts?
A - Compounding means investment returns can earn further returns over time. Starting young gives investments decades to grow, which can significantly increase long-term outcomes.
For even more frequently asked questions about KiwiSaver in New Zealand, visit my full KiwiSaver FAQ page here.