As part of the 2025 Budget, the Government has announced several changes to KiwiSaver aimed at helping New Zealanders grow their savings, whether for a first home or retirement. These updates are important and may affect how you contribute and benefit from KiwiSaver, so it’s worth taking a moment to understand what’s changing and when.

Key changes and dates

• 16 and 17-year-olds will become eligible for the Government contribution – an encouraging step for younger savers.
• The Government contribution will reduce to 25 cents for every $1 contributed, up to a maximum of $260.72 per year.
• Those earning over $180,000 annually will no longer be eligible for the Government contribution.

From 1 April 2026:

• Employers will be required to match contributions for 16 and 17-year-olds.
• The default contribution rate for both employees and employers will increase to 3.5%, and then to 4% from 1 April 2028.
• Employees will still have the option to temporarily reduce their contribution rate to 3%, and employers can match that rate.

These changes are a step in the right direction, especially the increased support for younger members and the gradual rise in contribution rates. They reflect a growing focus on helping Kiwis close the gap between current savings and the cost of a comfortable retirement. At RIVAL Wealth, we’re here to help you make the most of these changes. Whether you’re just starting out or reviewing your long-term strategy, our KiwiSaver experts can guide you through your options and ensure your plan aligns with your goals.