In short: the government now pays half as much as it used to. Default contributions went up to 3.5% in April 2026 and go to 4% in April 2028. And 16 and 17-year-olds get more support.
The government contribution halved (from 1 July 2025)
The government now adds 25 cents for every dollar you contribute each year, up to a maximum of $260.72. It used to be 50 cents per dollar, up to $521.43. To get the full amount, you need to put in at least $1,042.86 a year.
If your taxable income is over $180,000 a year, you no longer get the government contribution at all.
Default contribution rates are going up
- From 1 April 2026: the default employee and matching employer rate rose from 3% to 3.5%.
- From 1 April 2028: it rises again, to 4%.
If you were already contributing more than 3%, your rate stays where it was. If you need to, you can apply to stay at 3% for 3 to 12 months. Your rate then goes back to the default, and you can reapply.
16 and 17-year-olds
16 and 17-year-olds now qualify for the government contribution. From 1 April 2026, they also get employer contributions if they're eligible.
What to check on your own KiwiSaver
- Are you getting the full government contribution? If you're self-employed or not working, you may need to top up yourself before 30 June each year.
- Is your fund type right? Conservative, balanced and growth funds behave very differently. The right one depends on when you'll need the money.
- What are you paying in fees? Fees come out of your balance every year, so they add up over time.
- Has your plan changed? Saving for a first home and saving for retirement can call for different funds.
Source: Inland Revenue, KiwiSaver changes. Eligibility rules apply. This is general information, not financial advice.
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