Insights
KiwiSaver Changes from 1 April 2026: What You Need to Know
KiwiSaver Changes 2026: Contribution Rates & Government Updates
KiwiSaver Changes 2026
From the 1st of April 2026, the default KiwiSaver contribution rate will increase from 3% to 3.5%. That means both you and your employer will contribute a little more from each pay.
If you’re currently contributing at 3%, your employer will likely update payroll automatically, so the new rate applies from the 1st of April.
If the increase doesn’t work for your budget, you can apply for a temporary rate reduction, which allows you to keep contributing at 3% for a period of three to twelve months.
There’s also a great step forward for younger savers. From April 2026, 16 and 17-year-olds can now receive employer KiwiSaver contributions too, provided they meet the usual requirements,
Some government contribution rules have already changed. The government now contributes 25% for every dollar you contribute, up to $260.72 per year, and people earning over $180,000 a year are no longer eligible for the government contribution.
Going back to the increase in contribution rate for a moment, if you’re concerned, remember this is happening to increase the likelihood of you saving enough for your retirement.
Even a small increase in contributions can help grow your KiwiSaver balance over time because of compounding interest. Compounding interest is when your money earns money… and then that money earns money too.
If you have questions about these changes, feel free to get in touch
