Preparing for KiwiSaver changes

The Government has announced a number of changes to KiwiSaver to help Kiwis save more for their first home and retirement as part of the 2025 Budget. These changes are significant and will impact many of us, so it's important to stay informed. 

Some of these changes will take effect from 1 July 2025, whilst others don’t start until 1 April 2026.

• From 1 July 2025, 16- and 17-year-olds will be eligible for the Government contribution.
• From 1 April 2026, employers must match contributions for 16- and 17-year-olds.

• From 1 July 2025, the Government contribution will reduce to 25 cents for every $1 you contribute between 1 July and 30 June, up to $260.72 per year. 
• Government contribution payments for the current year ending 30 June 2025 are not impacted by this change and are due to be paid this July/August. Members earning over $180,000 per year will no longer receive the Government contribution.

The default contribution rate for both employees and employers will increase to:

• 3.5% from 1 April 2026
• 4% from 1 April 2028

Employees will be able to temporarily opt down to the current 3% rate if needed and employers will still match that rate.

These  changes are good first steps towards helping New Zealand address the gap between average KiwiSaver balances and the cost of a comfortable retirement with increased default contribution rates. 

The extension of Government and employer contributions to 16-and 17-year-olds will also have a meaningful positive impact, especially for those starting out with small balances and saving for a first home.

As these changes are implemented, we’ll continue to keep you informed with actions you may wish to take in regard to your contributions and Government contributions, to help meet your first home and retirement goals. Please get in contact with our KiwiSaver specialists on 0800 736 034 if you have any questions. We’re committed to helping you navigate these changes and continue to make informed KiwiSaver decisions.