Good news for your future savings! Over the next few years, the Government will be increasing the default KiwiSaver contribution rates for both employees and employers. That means more money going into your account and more working for you over time.

Here’s what’s changing…

From 1 April 2026

The default contribution rate is increasing:

Employee contributions: 3% → 3.5%
Employer contributions: 3% → 3.5%

0.5% might not sound like much, but when it comes to investing, small increases can make a big difference over time.

Here’s how this could look for you.

Let’s say you earn $70k and have $40k in your KiwiSaver fund, returning 5.5% a year.

This is how your balance would look after 1 year:

At 3% contributions, your balance would be: $46,656
At 3.5% contributions, your balance would be: $47,356

That’s $700 extra in just one year! Now imagine that compounding over 10, 20, or 30 years.

Can you stay at 3%?

Yes, but only temporarily. Find out more by visting the Inland Revenue Department (IRD) website.

16 & 17-Year-Olds

Awesome news for younger Kiwis. From 1 April 2026, if you’re 16 or 17 and contributing from your wages, your employer will now have to contribute too. Previously, employer contributions only applied to workers aged 18–65. This is a great incentive for young people starting work early!

From 1 April 2028

Default contribution rates will increase again:

Employee contributions: 4%
Employer contributions: 4%

The Bottom Line

Yes, your take-home pay will reduce slightly. But this is one of those short-term trade-offs that can create serious long-term impact. Thanks to compounding interest, a small increase today can mean tens of thousands more by retirement.

Now is a great time to ask yourself:

Can I comfortably afford the higher rate?
Am I in the right fund to make the most of this?

Because contributing more is powerful, but being in the right KiwiSaver fund is just as important.

Not sure if you’re set up properly?

That’s what we’re here for. We help everyday Kiwis make sense of KiwiSaver, by choosing the right provider and the right fund to suit their goals and stage of life.

Reach out below for a free KiwiSaver review.

Default KiwiSaver Contribution Rates are Increasing.