Changes to KiwiSaver on 1 April 2026
- Cameron Steele
- Mar 17
- 2 min read
You might have noticed more comments in the news recently - KiwiSaver is going through a few changes on 1 April 2026.
If you're an employee making the minimum contribution of 3% from your pay, this is about to change to 3.5%.
The good news is that your employer will also be raising their contribution to 3.5%. Over the years until you turn 65 this extra 1% will make a real impact to your future balance and comfort levels in your senior years, so this is a very good thing.
Of course, you can always contribute more than the minimum which has an even more positive impact.
There is a provision to allow people to keep their contribution at 3% - which means their employer will only pay 3% also. You can select from 3 to 12 months, after which it will go to 3.5%, unless you apply for a temporary reduction again.
This can be done online with your MyIR login. Select 'KiwiSaver temporary rate reduction', and Follow the prompts. This will create an acceptance letter that shows the start and end dates of your temporary rate reduction. Show it to your employer to get them to reduce your rate.
Hold on to your notice. If you change jobs, you'll need to show it to your new employer if you want to continue with the rate reduction.
16 and 17 year old now receive employer and Government contributions
This is a huge benefit for younger people who are already working, either full time or part time. Until now, all eligible Kiwi workers over 18 have been automatically enrolled into KiwiSaver & received these benefits. The benefits will now extend for 16 and 17 year olds.
As soon as people understand the effect that time has on the compound effect, these extra 2 years make a huge difference.
HOWEVER - under 18s need to be enrolled by a parent - it is not automated and they can not do it themselves.
Only 1 parent's signature is needed - it used to be both parents until very recently.
The best way to do this is get an expert like me talk them through how KiwiSaver works and why it's important. I've also written an eBook about how to make your kids better with money which you can download here.
Meeting with me include a personalise projection for your KiwiSaver account, including the impact of the new rules. My services cost you nothing - I'm similar to a mortgage broker.
Simple Steps, Solid Results.
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