A new year often brings new KiwiSaver rules – and 2026 is no exception. From 1 April, one of the biggest KiwiSaver changes in years kicks in, and it could have a direct impact on how much you and your employer are contributing toward your future.
Here’s a clear breakdown of what’s changing, what it means for you, and a few simple ways to start 2026 feeling confident about your KiwiSaver.
The big KiwiSaver change coming in April 2026
Contribution rates increase to 3.5%
From 1 April 2026, the minimum KiwiSaver contribution rate for both employees and employers increases from 3% to 3.5%.
That means:
- If you’re contributing the minimum, your contribution will rise to 3.5% of your before-tax pay
- Your employer will also contribute 3.5%, before tax
- More money goes into your KiwiSaver account each payday, helping your balance grow faster over time
This change was announced as part of the 2025 Budget and is designed to help New Zealanders build stronger retirement savings.
There’s also a further increase planned to 4% from 1 April 2028, making this part of a longer-term shift toward higher KiwiSaver savings.
How the contribution increase works
The move to 3.5% applies automatically to people who are on the default KiwiSaver rate. However, KiwiSaver is flexible.
You can:
- Choose a different contribution rate if the minimum doesn’t suit your situation
- Temporarily opt to stay at a lower rate if needed (see exception below)
What matters most is understanding what the change means for you – and making sure your KiwiSaver settings still match your goals.
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What this means for different KiwiSaver members
If you’re an employee
You may notice a small change in your take-home pay from April, but the trade-off is more money invested for your future. Over time, even a 0.5% increase can make a meaningful difference thanks to compounding returns.
If you’re an employer
Employers will need to match the higher 3.5% contribution rate from April 2026.
If you’re a younger worker
From April 2026, 16- and 17-year-olds who are employed become eligible for employer contributions, helping younger New Zealanders start building their KiwiSaver earlier.
Exception: What is the process to stay on a lower (3%) contribution rate?
You can apply for a temporary rate reduction to continue contributing at 3% instead of moving up to the default 3.5%.
It’s important to note that this could also means your employer’s contribution could stay on 3%. It’s up to your employer to decide if they match your 3% or still contribute 3.5%. If they choose to stay on 3% too, effectively you are saving 1% less into your KiwiSaver account.
This is not the same as a hardship application — you don’t need to demonstrate financial hardship to make the request. Applications open from 1 February 2026, ahead of the rate change.
If Inland Revenue approves your temporary rate reduction, you will contribute at 3%. This reduction can last from 3 months up to 12 months, and you can reapply if you want to stay at 3% again. When the approved period ends, you’ll automatically default back to the higher rate unless you reapply or choose a different rate.
Changes to the Government contribution
Three key changes to the Government contribution came into effect on 1 July 2025. These changes apply to the payment run that occurs around July/August 2026 (to qualifying members).
- The Government contribution has been halved to 25 cents per dollar you contribute, up to a to a maximum of $260.72. Previously it was $521.43, which was 50 cents per dollar. To receive this, you still need to put in $1,042.86.*
- The Government contribution won’t be paid to those earning over $180,000 p.a.
- The Government contribution will now be paid to enrolled 16- and 17-year-olds (it was previously only paid to those aged over 18).
*This is always subject to eligibility conditions based on age and country of residence.
Simple KiwiSaver inspiration for 2026
Alongside what’s new, the start of a year is a great time to reset and make sure your KiwiSaver is working as hard as it can. Here are four quick reminders to keep in mind for 2026.
Review your contribution rate
With the minimum rising to 3.5%, it’s a good moment to check whether your current rate still feels right for your income, lifestyle and goals.
Check your fund type
Your fund should reflect how long you’re investing for and how comfortable you are with ups and downs. As your life changes, your fund choice might need to change too.
Think long term
KiwiSaver is a marathon, not a sprint. Small improvements now – like higher contributions or the right fund – can add up to a much bigger balance later.
Get support if you need it
You don’t have to figure KiwiSaver out on your own. A quick check-in or review can help you feel more confident about where you’re heading. Click below to get in touch with a Generate adviser.
Looking ahead to 2026
The increase to 3.5% KiwiSaver contributions from April 2026 is a positive step toward stronger retirement savings for many New Zealanders. Taking a few minutes to understand the change – and reviewing your own settings – can help you make the most of it.