What’s new with your KiwiSaver account

Key changes already in effect

Changes to government contributions
From 1 July 2025, the government’s matching contribution has been reduced. Instead of 50 cents per dollar, the government will now contribute 25 cents for every dollar you put in – up to $1,042.86 annually. This means the maximum government contribution you can receive each year is now capped at $260.72. Additionally, a new income threshold has been introduced. If you earn more than $180,000 annually, you will no longer be eligible to receive this government top-up.

Inclusion of 16- and 17-year-olds
Another important shift is the extension of eligibility for government contributions to 16- and 17-year-olds. As long as they meet the annual contribution requirement, these young members can now receive the same matching benefits as adults, giving them a stronger head start on long-term financial goals.

What’s coming soon

Gradual increases in contribution rates
Starting 1 April 2026, the minimum contribution rate for both employees and employers will increase from 3% to 3.5%. This step is the first in a phased approach designed to encourage higher long-term savings. Then, from 1 April 2028, the contribution rate will increase again—this time to 4% for both parties.

Employer contributions for younger employees
From 1 April 2026, employers will also be required to make KiwiSaver contributions for their 16- and 17-year-old staff, provided those employees are actively contributing to their KiwiSaver accounts. This change ensures that young earners are supported in building their savings from an early age.

Making the most of your KiwiSaver account

To maximise your government contribution, make sure you’re contributing at least $1,042.86 each year between 1 July and 30 June. This ensures you receive the full $260.72 government contribution—an easy way to avoid leaving free money on the table.

It’s important to encourage early participation, especially with new eligibility for government and employer contributions. For younger New Zealanders, opening a KiwiSaver account and contributing early helps build a strong foundation for long-term financial security.

As you prepare for upcoming contribution changes, take time to reassess your budget and financial goals. With contribution rate increases on the horizon, adjusting your contributions now can help you stay aligned with your retirement savings or first-home deposit plans.

Understanding how these changes affect you personally can make a big difference. Whether you’re a high earner navigating the new income limits or a parent planning for your teenager’s future, tailored advice is key. Reach out to your Enva Financial adviser for guidance specific to your situation.

DISCLAIMER

This information is provided in a general nature only and should not be construed as or relied on as financial advice. This is not a recommendation to invest in a particular financial product or class of financial products. You should seek financial advice specific to your circumstances from a financial adviser before making any investment decisions.