As of 1 July 2025, several key changes to KiwiSaver have come into effect, reshaping how New Zealanders save for their future. Here's a helpful overview to help you understand these updates and how they might impact your savings journey.
Changes to government contributions
Reduced matching rate: The government's matching contribution has been halved. Now, for every $1 you contribute (up to $1,042.86 annually) between 1 July and 30 June each year, the government will contribute 25 cents, up to a maximum of $260.72.
Income threshold introduced: Individuals earning over $180,000 annually are no longer eligible for the government contribution.
Inclusion of 16 and 17 year olds
Government contributions: From 1 July 2025, 16 and 17 year olds are now eligible to receive government contributions, provided they meet the contribution requirements.
Changes still to come
While some KiwiSaver changes have already come into effect, others are on the horizon:
Gradual contribution rate increases
From 1 April 2026: The minimum contribution rate for both employees and employers will increase from 3% to 3.5%.
From 1 April 2028: This rate will rise again to 4%, helping boost long-term savings.
Employer contributions
From 1 April 2026: Employers will be required to make KiwiSaver contributions for 16 and 17 year old employees who are contributing to their KiwiSaver accounts.
Making KiwiSaver work for you
Contribute enough to maximise the government contribution: If you're eligible for the government contribution, it's still worthwhile to contribute at least $1,042.86 each year to receive the full top-up. You can log in to the member portal to check your progress.
Start saving early: Including 16 and 17-year-olds in both government and employer contributions encourages early saving habits, setting a strong foundation for their financial future.
Boost your long term savings: The upcoming gradual increase in contribution rates aims to bolster your retirement or first home savings over time.
Staying informed about these changes ensures you can make the most of your KiwiSaver plan. If you have questions or need personalised advice, consider reaching out to your financial adviser or contact us to discuss your options.
DISCLAIMER
This information is provided in a general nature only and should not be construed as or relied on as financial advice. This is not a recommendation to invest in a particular financial product or class of financial products. You should seek financial advice specific to your circumstances from a financial adviser before making any investment decisions.