Whether you’re saving for your first home, planning for retirement, or trying to understand what the latest KiwiSaver changes mean for you, this update from the 2025 New Zealand Budget is essential reading.

On May 22, 2025, the government announced significant adjustments to KiwiSaver, affecting teens, contribution rates, and government subsidies. Here’s what you need to know—and what you can do to make the most of the changes.

Under the new rules, 16- and 17-year-olds who are working will now receive:

This change allows younger Kiwis to start saving earlier—whether it’s for a house deposit or retirement. Previously, these contributions only began at age 18.

• Employer contributions
• Government contributions

“Compound interest loves time,” says Debbie Roberts. “This is a win for younger generations getting a head start on their financial future.”

2. KiwiSaver Contribution Rates Are Increasing

The default contribution rates are set to rise:

• From 3% to 3.5% on April 1, 2026

• Then to 4% on April 1, 2028

Employees can still opt down to 3% if needed. Employers will match whatever rate the employee chooses.

Tip: If you can afford to stay at 4%, do it. The extra contributions now could significantly boost your KiwiSaver balance over time.

From July 1, 2025, the annual government contribution will reduce:

• From $521.43 to $260.72
• Removed entirely for those earning over $180,000 in taxable income

The Finance Minister says this is about fiscal sustainability and managing costs with an aging population.