KiwiSaver changes from April 2026: What you need to know

Some important changes are coming to KiwiSaver from 1 April 2026, and if you’re contributing through your wages, these updates could affect you.

To help make sense of what’s changing and what it means for you – we caught up with Oliver Benson, our KiwiSaver Adviser of the Year. He’s helped hundreds of Kiwi get their KiwiSaver sorted, so we asked him to answer some of the most common questions we’re hearing.

What’s actually changing with KiwiSaver from April?

The big one is that the default contribution rate is going up – from 3% to 3.5%. That means both you and your employer will likely start putting a bit more into your KiwiSaver each payday.

If you’re currently on 3%, it’ll automatically bump up to 3.5% from 1 April 2026 – unless you decide to make a change.

Do I have to move to the new 3.5% rate?

Not if it doesn’t work for you right now. There’s an option to apply for a temporary rate reduction and keep contributing 3% instead. It’s a pretty handy option if your budget’s tight or you’ve got other things you’re saving for. Your employer can choose to match your temporary rate reduction.

When can I apply for that, and how long does the reduction last?

You’ll be able to apply from 1 February 2026, ahead of the change in April. The temporary reduction can last anywhere between 3 months and 12 months – and you can apply more than once if you need to. It gives you a bit of breathing room without stopping your contributions altogether.

What are the changes for younger workers?

From 1 April 2026, if you’re 16 or 17 years old and contributing to KiwiSaver from your wages, your employer will now have to contribute too – as long as you’re eligible. That’s a big win for younger people who want to get a head start on their long-term savings!

What are the changes for employees earning 180,000+ per annum?

From July 2025, the Government contribution to KiwiSaver was reduced to a maximum of $260.72 a year, and eligibility was tightened. If you earn more than $180,000 per year, you no longer qualify for the Government contribution at all – even if you’re contributing regularly.

But that doesn’t mean KiwiSaver stops being worthwhile. Employer contributions, investment growth and using KiwiSaver as part of a broader financial plan can still make a big difference. But it does mean it’s a good time to review whether your current contribution rate and fund choice still make sense for your income and goals.

How will these changes affect me?

Most people will see their contribution rate increase to 3.5% – unless you opt out and for 16 and 17 year old’s they’ll be getting employer contributions on top of their own. Over time, that extra 0.5% could make a big difference to your first home or retirement savings. It’s all about giving people more flexibility, while also helping build stronger long-term savings.

For higher earners, it’s also worth noting that the Government contribution may no longer apply – which makes employer contributions and investment performance even more important.

What should I consider with these changes?

Everyone’s situation is different. If you’re not sure how the changes will affect you, or what contribution rate is right for your current goals and budget – have a quick chat with one of us!

That way, you can make a decision that fits your life right now and sets you up for the future.

This is especially important if your income has increased, or if you no longer qualify for the Government contribution – as your KiwiSaver may need to work a bit harder for you.

Want help figuring out your next move?

Book a KiwiSaver check-in with an Enva adviser today!
Email us at hello@enva.co.nz or call us at 0508 287 672