What Changed for KiwiSaver on 1 April 2026

This article was published in March 2026, ahead of the 1 April 2026 changes. The original content below explains what was changing and why - it is retained for context. The changes described here are now in effect.

This article was first published in March 2026, ahead of the 1 April changes. The original content below explains what was changing and why - retained here for context. All changes described are now in effect.

Minimum contribution rates increased to 3.5%

On 1 April 2026, the default minimum KiwiSaver contribution rate for employees increased from 3% to 3.5%. The minimum matching employer contribution rate also increased to 3.5%. Over the years until you turn 65, this extra 0.5% makes a real difference to your balance - so this is a positive change for most members.

Of course, you can always choose to contribute more than the minimum, which has an even greater impact on your retirement savings. Current employee contribution-rate options are 3.5%, 4%, 6%, 8%, or 10%.

A further increase to 4% is scheduled for 1 April 2028.

Temporary rate reduction to 3%

Eligible employees can apply for a temporary rate reduction, which allows them to contribute at 3% for a set period - and their employer contributes at 3% while the reduction is in place. You can select a reduction period of 3 to 12 months, after which contributions revert to 3.5% unless you apply for a further reduction.

To apply, log in to myIR and select "KiwiSaver temporary rate reduction" and follow the prompts. You will receive an acceptance letter showing the start and end dates. Give a copy to your employer so they can adjust your deductions.

Keep hold of your notice - if you change jobs, you will need to show it to your new employer to continue the reduced rate.

Learn more about the temporary KiwiSaver rate reduction (IRD.govt.nz)

Government contribution: now 25 cents per dollar

Eligible KiwiSaver members now receive a government contribution of 25 cents for each eligible dollar contributed during the KiwiSaver year (1 July to 30 June). The maximum government contribution is $260.72 per year, which generally requires you to contribute at least $1,042.86 of your own money during the year. Members with taxable income over $180,000 do not qualify for the government contribution.

16 and 17 year olds now receive employer and government contributions

These are two separate changes on two separate dates. From 1 July 2025, eligible KiwiSaver members aged 16 and 17 can receive the annual government contribution. From 1 April 2026, employers must also make compulsory KiwiSaver contributions for eligible 16 and 17-year-old employees. Both entitlements were previously available only from age 18. This is a significant benefit for younger workers, as starting two years earlier can make a meaningful difference to a retirement balance over time.

Important: under-18s must be enrolled by a parent or guardian - enrolment is not automatic and they cannot do it themselves. Only one parent's or guardian's signature is required.

If you have a teenager who is working, it is worth getting them set up with a KiwiSaver account to start benefiting immediately. I have also written an eBook about how to make your kids better with money which you can download for free.

Meetings with me include a personalised projection for your KiwiSaver account showing the impact of these changes on your balance. My advice is free to you - like a mortgage broker, I am paid by the provider you choose, with no change to your fees or returns.

Simple Steps. Solid Results.