KiwiSaver changes following the 2025 Budget

The Government announced a number of KiwiSaver changes in this year’s Budget, which take effect from 1 July 2025. 

As there are quite a few things that are changing, we’ve summarised them here for you:

The government contribution will be reduced

• From 1 July 2025, the government’s annual contribution will drop to 25c for each $1 you contribute, up to $260.72 per year (currently 50c, capped at $521.43).
• You will still need to contribute at least $1,042.86 a year to receive the full amount.
• If you earn more than $180,000 annually, you will no longer be eligible for the government contribution.
• This year’s government contribution is still $521.43. If you’re eligible and contribute $1,042.86 before 30 June 2025, you can still receive the full amount this year.

Members who are 16 and 17 will now be able to receive the government contribution

• From 1 July 2025, 16 and 17 year olds will be eligible for government contributions, and from 1 April 2026, they will be eligible for employer contributions.

Employee and employer contribution rates are increasing 

• From April 2026, default KiwiSaver contribution rates will gradually increase:
  • 1 April 2026, the rate will rise from 3% to 3.5%
  • 1 April 2028, it will increase further to 4%

We are currently working on updates to our projections so you can see what effect this will have on your KiwiSaver retirement savings – we’ll let you know when this has been completed.

Temporary rate reduction available

• From 1 February 2026, KiwiSaver members will be able to apply to Inland Revenue for a temporary rate reduction to remain on 3% for up to 12 months, unless extended further.