KiwiSaver is changing again. From July 2025, 16- and 17-year-olds who are working will start receiving employer contributions. This is a big shift. And it could have a bigger impact than most people realise.
It’s a good time to talk about saving for retirement. But it’s also a perfect time to talk about life insurance. Both go hand-in-hand when planning for a secure future.
Let’s break it down in plain Kiwi English.
What’s changing in KiwiSaver?
Right now, if you’re under 18 and working, your employer doesn’t have to match your KiwiSaver contributions. That’s about to change. From July 1st, 2025, employers will need to contribute to KiwiSaver for 16- and 17-year-olds just like they do for adults. kiwisaver-changes
This means young workers will start building retirement savings earlier. A big win for their future. More savings over time means more choice later in life.
Why it matters for families
If you’re a parent, this change could affect how you talk about money with your kids. It’s a chance to teach them about smart money moves from a young age. Earning. Saving. Growing their money. And planning ahead.
It’s also a moment for the rest of us to rethink our long-term plans. If your teen is starting to save for retirement, are you also protecting your own future?
That’s where life insurance comes in.
KiwiSaver isn’t a safety net for everything
KiwiSaver is great for retirement. And it can help first-home buyers get on the property ladder. But it won’t help much if you get sick or injured and can’t work. It won’t support your family if something happens to you unexpectedly.
That’s where life insurance, income protection, and trauma cover come in. They work alongside your savings to keep your family safe.
Think of KiwiSaver as your long game. Insurance is your backup plan.
The unexpected can happen
Most of us don’t like thinking about worst-case scenarios. But life has a way of throwing curveballs.
- What if you or your partner couldn’t work for six months?
- What if a serious illness meant big bills?
- What if something happened to you, and your family lost your income?
That’s where insurance saves the day. It means your family can keep paying the mortgage. Your kids can keep their routines. You can focus on recovery instead of worrying about money.
Starting young is smart
Young people entering the workforce with KiwiSaver contributions is great. It builds financial habits early. But it’s also a chance to talk to them about protecting their income and future.
It’s cheaper to get insurance when you’re young and healthy. And once you’ve got cover, you can often keep it as you age, even if your health changes later.
That means a small step now can have a huge payoff later.
Planning for the whole picture
Financial planning isn’t just about saving for the future. It’s about protecting what you have now.
Let’s say you’re in your 30s or 40s. You’ve got a mortgage, a partner, maybe kids. You’re putting money into KiwiSaver. That’s a solid start. But if you don’t have life insurance, you could be leaving a gap.
If something happens to you, your KiwiSaver won’t help your family for years. Insurance fills that gap. It pays out when your family needs it most.
Real Kiwi stories
We’ve seen it time and again. A young couple buys a house, using their KiwiSaver, but doesn’t get insurance. Then one partner is diagnosed with cancer and can’t work.
They have to drain their savings. Sell the car. Ask family for help.
With insurance, the story would be different. A lump sum or income support would give them breathing room. They could focus on treatment and healing, not bills.
A simple next step
You don’t have to figure it out alone. A quick chat with Andre at Mortgage and Insurance NZ Ltd can help you see the gaps and find cover that fits your budget.
We’re here to help you make sense of it all. We speak plain English. We don’t push products you don’t need. We find what works for you and your whānau.
KiwiSaver is changing. That’s good news. But don’t stop there. Make sure you’re protecting everything that matters.
Final thoughts
The 2025 KiwiSaver change helps young people start saving earlier.
It’s a great chance for families to talk about money, saving, and the future.
But KiwiSaver isn’t the full picture. It doesn’t protect your income.
Life insurance, trauma cover, and income protection fill that gap.
The best time to get covered is before you need it.
Talk to us. Let’s get your future sorted.