The Government is making changes to KiwiSaver. Here’s a summary of the key changes and what they mean for you.

How KiwiSaver contributions work

If you’re employed, contributions go into your KiwiSaver each payday – a percentage of your pay, and a matching contribution from your employer. You may also receive an annual government contribution if you’re eligible.* Learn why KiwiSaver is an important part of every New Zealander’s retirement plan.

What’s changing

Contribution rates are increasing

From 1 April 2026, the default contribution rate increases from 3% to 3.5% for both you and your employer. If you’re on the default rate, this will update automatically. You can also choose to contribute more — at 4%, 6%, 8%, or 10%.

To put this in context, if you earn $70,000 a year, the difference between 3% and 3.5% is around $350 more from you per year — and roughly the same again from your employer. That’s about $700 more going into your KiwiSaver annually, or around $7 extra per week from your pay.

The government contribution has reduced

From July 2025, the annual government contribution dropped from 50c to 25c for every $1 you contribute. The new maximum is $260.72 per year, which you can receive by contributing $1,042.86 before 30 June each year.

If you earn more than $180,000 of taxable income a year, you no longer qualify for the government contribution.

16 and 17-year-old workers will receive employer contributions

From 1 April 2026, eligible 16 and 17-year-olds who contribute to KiwiSaver through work will also receive employer contributions.

Do I need to do anything?

You don’t need to do anything — changes to the default rate apply automatically.

If the higher contribution rate doesn’t suit your budget right now, you can apply to temporarily stay at 3%. A temporary rate reduction lasts between 3 and 12 months so you can balance short-term needs with long-term savings. See the IRD website on how to apply.

While reviewing your KiwiSaver, it may also be a good time to:
  • Check whether you’re on track to receive the full government contribution; we do send reminders close to the end of the KiwiSaver year which is 30 June.
  • Check your Prescribed Investor Rate (PIR) is correct – use the IRD calculator.
  • Contact us if you have any questions.

The minimum rate is scheduled to increase again, to 4%, from 1 April 2028.