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.