From 1 April the KiwiSaver landscape is changing - just when we'd begun to get our heads around it.

For those yet to join KiwiSaver now's a good time to look at the new structure and decide if it's right for you. Does it make sense to contribute two percent of your pay to get a matching two percent from your employer, a $1000 kick-start, and up to $1042.86 per year in KiwiSaver tax credits?

If you're already in KiwiSaver, you can now lower your contribution to two percent of your gross pay.

But before jumping on the two percent bandwagon, think about these points:

• By contributing less, you'll have less money when you retire.
  
  
• If you earn under $52,000 a year and opt for the two percent contribution, your KiwiSaver tax credit (the free money the government puts into your KiwiSaver account each year) will reduce. However, you can make extra voluntary contributions to qualify for the maximum $1042.86 tax credit.
  
  
• Mortgage diversion lets you use up to half of your contribution for repaying the mortgage on your home (provided your bank, type of mortgage and KiwiSaver provider allows you to do this). Lowering your KiwiSaver contributions means there won't be as much money for diverting to your mortgage.

Other changes

• You'll no longer get the $40-per-year fee subsidy. This is particularly important for people who've opened KiwiSaver accounts for children and aren't contributing much to these accounts: accounts with low balances may gradually reduce if investment gains are eaten up by fees.
  
  
• Employer contributions compulsorily increase from one percent to two percent, but won't increase any further.
  
  
• If your employer voluntarily contributes more than two percent, it will have to pay tax on the portion above two percent. Some employers won't want to do this, which could mean less money will go into your KiwiSaver account.
  
  
• If your employment contract allows it, your KiwiSaver employer contributions can now be counted as part of your total remuneration package. This means a non-KiwiSaver member can negotiate a higher "in the hand" or pre-tax salary than a KiwiSaver member.

More from consumer

• KiwiSaver fees - we look at the confusion of KiwiSaver fees
• Consumersaver.org.nz - our guide to KiwiSaver, including risk quiz and details of providers

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