Important KiwiSaver Updates from Budget 2025
The New Zealand Government has announced significant changes to KiwiSaver, effective from 1 July 2025:
Government Contribution Reduced: The annual government contribution will halve from $521.43 to $260.72. To receive the full amount, members must still contribute at least $1,042.86 annually.
Income Threshold for Contributions: Individuals earning over $180,000 annually will no longer be eligible for the government contribution.
Increased Default Contribution Rates: Default employee and employer contribution rates will rise to 3.5% from 1 April 2026 and to 4% from 1 April 2028. Employees can apply for a temporary exemption to remain at the current 3% rate.
Inclusion of Younger Savers: From 1 July 2025, 16- and 17-year-olds contributing to KiwiSaver will be eligible for both employer and government contributions.
At Mortgage & Insurance New Zealand Limited, while we don’t provide KiwiSaver advice directly, we collaborate with trusted professionals who do. If you have questions or need guidance on how these changes might affect you, we’re here to connect you with the right experts.
📞 Contact us today to be referred to a qualified KiwiSaver advisor.
Note: This post is for informational purposes only and does not constitute financial advice.