Proposed changes to KiwiSaver in a Bill currently before Parliament would allow people over 65 to join the scheme to give them access to a provider of low-cost managed funds in retirement. The 5-year minimum lock-in requirement would also be removed for these members.

Currently, people over age 65 cannot join the scheme but can continue to contribute if they are already a member.

Other changes include new contribution rate options of 6% and 10% and reducing the maximum contribution holiday from five years to one year. IRD expect these changes to address low contribution rates and lengthy contribution holidays being taken by KiwiSaver members.

The new 6% contribution rate provides members with further flexibility for savings and addresses the gap between the current 4% and 8% options.

Proposed changes to contribution rates would come into effect from April 2019 with other changes by July 2019 if the bill is passed.