If you’re one of the 89% of working-age New Zealanders who are enrolled in KiwiSaver, you’ll no doubt have noticed plenty of recent news coverage about changes to the scheme. From increasing default contribution rates, to reducing government top-ups, and bringing younger earners into the fold – there’s a lot to get your head around.

To make it easier to understand how KiwiSaver updates may affect you, we’ve pulled together a summary of the key changes, along with our advice about what to talk about with your financial adviser when it comes to getting the best from KiwiSaver.

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The 2025 KiwiSaver changes to know about:

• Younger members are now included: People aged 16 and 17 now qualify for government contributions (if they meet other eligibility requirements). Previously, you had to be 18 or older.
• The government’s contribution has halved: The annual government KiwiSaver contribution has reduced by 50% – dropping from $521.43 to $260.72 per year.
• High earners no longer qualify: Anyone earning over $180,000 of taxable income in a year is no longer eligible for government contributions.

While the above KiwiSaver changes have already been implemented (they took effect on 1 July 2025) there are still more changes to come, including the phased introduction of increased default KiwiSaver rates.

Here’s a summary of the additional changes that will be rolled out over the next two years:

From 1 April 2026:

• Default KiwiSaver rates will increase to 3.5%: Contribution rates for both employers and employees will increase to 3.5% (up from 3%).
• Members will be able apply for a temporary rate reduction: This allows them to stay at 3% for a short period instead of moving up. Employers can match an employee’s temporary reduction – but, once the employee moves up, employer contributions must also rise to the default 3.5%.
• Under 18s will be eligible for employer contributions: If you have 16- or 17-year-old staff who are contributing to KiwiSaver, you’ll now need to contribute too.

From 1 April 2028:

• Default KiwiSaver contributions rise to 4%: From 1 April 2028, the default contribution rate for both employers and employees will become 4% (increasing from 3.5%).

As registered financial advisers, we are always closely monitoring these changes to ensure we continue to provide the best possible advice to our clients. No matter where you are in your retirement planning journey, it’s worth speaking with a registered financial adviser about your situation, needs and savings goals.

Why talk to a financial adviser about KiwiSaver?

1. Understanding fees vs. returns can make a big difference

Even small differences in fees can compound into tens of thousands of dollars over a working lifetime. But beware – you shouldn’t just be targeting the lowest fee option. It’s vital that you weigh fees up against long-term returns. An adviser can cut through the complexity to show you what really delivers value.

2. Fitting KiwiSaver into your wider retirement plan

KiwiSaver is just one piece of the retirement puzzle. How much you contribute, what fund type you’re in, and how that complements other savings or investments can have a huge impact on your future lifestyle. A financial adviser can help you map out a plan that uses KiwiSaver as a strong foundation while ensuring you’re on track overall.

3. Staying ahead of ongoing changes

With government rules around contributions, eligibility, and incentives shifting in the coming years, professional advice can help you adjust your strategy, so you don’t miss opportunities or get caught out by new rules.

A final word of advice:

While it might be tempting to ‘set and forget’ your KiwiSaver by going with one of the government’s default schemes, it’s worth having a conversation with a registered financial adviser who understands your unique situation, needs and goals. Doing this will enable you to compare funds and ensure you’re with one that aligns with your goals and risk appetite.