KiwiSaver contributions are increasing – what it means for you
Starting 1 April 2026, the default KiwiSaver contribution rate will rise from 3% to 3.5% for both employees and employers. This is part of a gradual increase designed to help New Zealanders save more for retirement, with a further increase to 4% scheduled for 1 April 2028.
Understanding these changes now will help you plan effectively for your future.
How the 2026 changes affect you
For employees
If you are contributing the standard 3% rate, your contributions will automatically increase to 3.5%, and your employer will match this new rate.
If you are already contributing more than 3%, your rate stays the same, but your employer’s contributions will rise to 3.5%.
Young employees aged 16 and 17 will also benefit from employer contributions at 3.5%, provided they meet eligibility requirements.
Temporary contribution option
If you prefer to maintain your current 3% contribution temporarily, you can apply for a temporary rate reduction for a period of 3 to 12 months.
Contributions will automatically return to the default rate after this period, and you can apply for additional temporary reductions if needed.
For employers
Employers need to update payroll systems to apply the new 3.5% default rate for both employee and employer contributions.
Ensure contributions are made for eligible 16 and 17 year old employees.
Process any temporary rate reduction requests submitted by employees.
Looking ahead to 2028
The default contribution rate will rise again to 4% in April 2028. This gradual increase ensures that employees steadily build their KiwiSaver balances, with employer contributions adding even more to their retirement savings over time.
Why this matters
Even a small increase in contributions can make a significant difference over the long term thanks to compounding growth. Higher contributions mean more money invested, which can lead to a larger retirement nest egg.
This also allows younger employees to take advantage of early growth in their KiwiSaver accounts.
What you can do now
Check your current KiwiSaver rate and consider whether you want to take a temporary reduction.
Review your investment strategy with our KiwiSaver adviser, Alex Nicholson. Funds from providers such as Booster, Generate, Milford, and Fisher Funds offer options ranging from conservative to growth-oriented, depending on your risk preferences.
Plan for the 2028 increase so that the rise to 4% doesn’t catch you by surprise and fits within your budget.
Final thoughts
KiwiSaver contribution increases are designed to help New Zealanders save more for the future. By understanding how these changes affect you and reviewing your KiwiSaver plan, you can stay on track to achieve your retirement goals.
If you’d like personalised advice on adjusting your KiwiSaver contributions or investment choices, our team can help you make the most of these upcoming changes.