The wait is over, and after some speculation, we now know exactly what changes are being made to KiwiSaver. If you’ve caught some of the headlines, you’re probably left wondering

  1. What does it all mean for me? and
  2. Are the KiwiSaver changes positive?

To answer these queries and others, we’ve put together some FAQs below.

What changes are being made to KiwiSaver?

  • Those aged 16 and 17 will be eligible for government contributions (from 1 July 2025) and employer contributions (from 1 April 2026).
  • From 1 July 2025, the government contribution is reducing from a maximum of $521.43 to $260.72 per year. Eligible members will still need to contribute $1,042.86 per year to qualify for the full government contribution and those earning $180,000 or more will no longer be eligible.
  • Employee and employer minimum contribution rates will increase from 3% to 4%. From 1 April 2026 the rate will go to 3.5%; then to 4% from 1 April 2028. Members will be able to temporarily keep their contributions at 3% if needed.

What if I’ve already contributed more than $1,042.86 this year – do I need to do anything?

  • None of the announced KiwiSaver changes will come into effect this KiwiSaver year (1 July 2024 – 30 June 2025). If you are eligible for government contributions and have already contributed $1,042.86 or more this year, then you will automatically receive a government contribution of $521.43 in July 2025.

How can I check how much I’ve contributed this year?

  • You can check how much you’ve contributed by either visiting the Milford client portal/app or logging into myIR.

Is there a tool I can use to measure the impact that these changes could have on my KiwiSaver?

  • Yes, Sorted have updated their KiwiSaver calculator to reflect the amendments to KiwiSaver. Head along to their website to see what these changes could mean for you.

So, we know what the changes are, but are they positive? For the most part, yes, we believe these changes will improve the KiwiSaver system and are a step in the right direction, which is a good thing for everyone!

  • Having a higher default contribution rate of 4% is a good initiative and will ultimately mean that KiwiSaver members have more funds available for their first homes and retirement. Every extra dollar invested means a lot more in the long run thanks to compounding returns.
  • Allowing 16 and 17 year old KiwiSaver members (who often have part-time jobs) to qualify for government contributions is a positive step and will encourage good investing habits to form at an earlier age.
  • Whilst government contributions have reduced, they are still available to most KiwiSaver members and when compounded over time, can still amount to a significant benefit to the overall value of your KiwiSaver investment.