KiwiSaver – contribution rates set to go up to 3.5%

From 1 April 2026, the default minimum KiwiSaver contribution rate for both employees and employers will increase from 3% to 3.5%. That means if you’re currently on the minimum, a slightly larger slice of each payday will head straight into your retirement savings, and your employer will also be putting in a bit more. Over time, that extra 0.5% from both sides can add up significantly, especially when compounded over decades.

There is flexibility built into the changes. The rules allow people who genuinely can’t afford the increase to apply to Inland Revenue for a temporary rate reduction so they can effectively stay at 3% for up to 12 months at a time. For many clients, though, the increase is a gentle nudge in the right direction – a way to boost long‑term savings without having to make separate transfers or remember to “top up later”. A common conversation we’re having is: if 3.5% is manageable, could 4% or 6% be realistic once other debts are under control.

It's also important to remember that not all KiwiSaver providers are considered equal and being in the right type of fund is crucial for such a critical investment. Ensuring you’re in the right fund and provider for your unique situation, could be the difference of hundreds of thousands of dollars come retirement.

We provide free KiwiSaver advice and would love the opportunity to review and ensure your investment is working as hard as it can for you. Do get in touch.