KiwiSaver: What you need to know after budget 2025
Recent changes to KiwiSaver have been introduced following the 2025 budget. These changes, which started on July 1, 2025, and will be phased in over the next few years, are important for you to be aware of. They will have an impact on your retirement savings and the potential government incentives you may receive.
Key changes to KiwiSaver
Government contribution: The maximum annual government contribution has been reduced. You can now get up to $260.72 from the government, down from $521.43. To receive this full amount, you'll need to contribute at least $1,042.86 of your own money each year.
Contribution rates: Starting in 2026, the default employee and employer contribution rates will increase in two steps:
• 3.5% per annum from April 1, 2026
• 4% per annum from April 1, 2028, Additionally, a temporary opt-down option will be available from February 1, 2026, allowing you to reduce your employee contributions back to 3% for a period.
Eligibility: From July 1, 2025, if you are 16 or 17 years old, you now qualify for the government contribution.
What this means for you
These changes may impact your retirement savings positively or negatively, depending on your contribution strategy. To make the most of your KiwiSaver, it’s a good idea to review your contributions to ensure you are still on track to meet your retirement goals and understand how to receive the full government contribution.
If you have any questions or would like to discuss these changes, your financial adviser can provide valuable guidance.
Links to source:
https://www.budget.govt.nz/budget/2025/at-a-glance/kiwisaver.htm
Important information
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