The Government recently released Budget 2025. With national expenses outpacing revenue, this budget includes a series of changes aimed at ensuring those who can contribute more do so. One of the biggest shake-ups? KiwiSaver.
Reductions in Government contributions and higher minimum contribution rates make it clear that individuals will be expected to fund a greater share of their
retirement. Here is what is changing and what it means for you:
- Minimum Contribution Rates are Increasing
From April 2025, the minimum contribution rate for both employees and employers will increase from 3% to 3.5%, and then to 4% from April 2028.
Opt-outs will be permitted for a period, but higher contributions will become the default.
- Government Contribution Cut
From July 2025, the government contribution will be halved — you will receive 25c for every $1 you contribute, up to a maximum of $260.72 per year
(previously $521). Additionally, if you earn over $180,000 annually, you will no longer be eligible for this contribution.
- Support Extended to Younger Savers
A welcome change: 16- and 17-year-olds will now qualify for government contributions and employer matches, starting next year.
This makes KiwiSaver more important than ever. To make KiwiSaver work for you, you need to ensure you are in the right fund and understand how your KiwiSaver balance is tracking, so you can make informed decisions about your future.
To help you take control of your financial future, we have partnered with Kōura Wealth to offer a free KiwiSaver plan review.