KiwiSaver contribution changes
From April 2026, important changes to KiwiSaver contribution rates will come into effect. These updates are designed to help New Zealanders build stronger retirement savings over time, but they may also affect your take-home pay and how much is being invested on your behalf.
Here’s a clear overview of what’s changing, how it works, and what you might want to review.
KiwiSaver contribution rate increase
From 1 April 2026, the minimum KiwiSaver contribution rate for both employees and employers will increase from 3% to 3.5%.
In practical terms:
If you’re contributing the minimum, your KiwiSaver contributions will increase to 3.5% of your before-tax pay
Your employer will also contribute 3.5% (before tax)
More money will go into your KiwiSaver account each payday, helping your balance grow faster over time
This change was announced as part of the 2025 Budget and is part of a longer-term shift toward higher retirement savings. A further increase to 4% is planned from 1 April 2028.
How the contribution increase works
If you’re currently on the default KiwiSaver rate, the move to 3.5% will happen automatically from April 2026.
That said, KiwiSaver is flexible. You can:
Choose a different contribution rate if the minimum doesn’t suit your situation (although where at all possible sticking with a higher savings rate is advisable)
Apply to temporarily stay at a lower rate if needed (see exception below)
What matters most is understanding what the change means for you and making sure your KiwiSaver settings still align with your goals.
What this means for different KiwiSaver members
If you’re an employee - You may notice a small change in your take-home pay from April 2026. However, the trade-off is more money invested for your future. Over time, even a 0.5% increase can make a meaningful difference, thanks to the power of compounding returns.
If you’re an employer - From April 2026, employers will need to match the higher 3.5% KiwiSaver contribution rate for employees who are on the default rate.
If you’re a younger worker - From April 2026, 16- and 17-year-olds who are employed become eligible for employer KiwiSaver contributions. This helps younger New Zealanders start building retirement savings earlier.
Staying on a lower (3%) contribution rate – temporary rate reduction
If the increase to 3.5% doesn’t suit your situation, you can apply for a temporary rate reduction to continue contributing at 3%.
Key things to know:
This is not a hardship application — you don’t need to prove financial difficulty
Applications open from 1 February 2026
If approved, the reduction can last between 3 and 12 months
You can reapply if you wish to stay at 3% longer
When the approved period ends, you’ll automatically move back to the higher rate unless you reapply or choose a different rate
It’s important to note that your employer’s contribution may also stay at 3% during this time. Employers can choose whether to match your lower rate or continue contributing 3.5%. If they also remain at 3%, you would effectively be saving 1% less overall into your KiwiSaver account.
Changes to the Government KiwiSaver contribution
Three key changes to the Government contribution came into effect on 1 July 2025. These changes apply to the payment run that occurs around July/August 2026 (for qualifying members).
The Government contribution is now 25 cents per dollar you contribute, up to a maximum of $260.72 (previously $521.43)
To receive the full amount, you still need to contribute $1,042.86 per year
The Government contribution is not paid to those earning over $180,000 per year
The Government contribution is now paid to enrolled 16- and 17-year-olds (previously only those aged 18+)
Eligibility conditions still apply based on age and country of residence.
Simple KiwiSaver reminders for 2026
With these changes coming into effect, the start of 2026 is a great time to review your KiwiSaver and make sure it’s working as hard as it can for you.
A few helpful reminders:
Review your contribution rate: With the minimum rising to 3.5%, check whether your current rate still feels right for your income, lifestyle, and goals. Ideally you want to be investing 10-15% of your pay.
Review your fund type: Your fund should reflect how long you’re investing for and how comfortable you are with ups and downs. As your life changes, your fund choice might need to change too.
Think long term: KiwiSaver is a marathon, not a sprint. Small improvements now — such as higher contributions or the right fund choice — can make a big difference over time.
Get support if you need it: You don’t have to figure KiwiSaver out on your own. A quick review or check-in can help you feel more confident about where you’re heading.
Looking ahead
The increase to 3.5% KiwiSaver contributions from April 2026 is a positive step toward stronger retirement savings for many New Zealanders. Taking a few minutes to understand the changes — and reviewing your own KiwiSaver settings — can help you make the most of what’s ahead.
If you’d like help reviewing your KiwiSaver contribution rate or fund choice, feel free to get in touch.