Key KiwiSaver Policy Changes at a Glance (2025 Budget)

The Government has announced several significant changes to KiwiSaver, aimed at increasing long-term savings and improving fiscal sustainability. These changes will be phased in, so it's important to understand their timing:

Increased Default Contribution Rates: 

• Employee and employer minimum contribution rates will increase from 3% to 3.5% from 1 April 2026.

• They will then increase further to 4% from 1 April 2028.

• Members will retain the option to temporarily reduce their contribution rate back to 3% for a period of up to 12 months if needed.
  

Changes to Government Contribution: 

• From 1 July 2025, the government contribution (Member Tax Credit) will be halved to 25 cents for every $1 contributed, up to a maximum of $260.72 per year (down from $521.43).

• Eligibility for the government contribution will also be means-tested, with individuals earning more than $180,000 annually no longer eligible from 1 July 2025.

Note: The current KiwiSaver year (1 July 2024 – 30 June 2025) will still see the full $521.43 government contribution for eligible members who contribute $1,042.86 or more.

Extension to Younger Members:

• 16 and 17-year-olds will now be eligible for government and employer contributions, encouraging earlier savings habits.