Your KiwiSaver Update: What the 2026 Changes Mean for You
With the budget announcements earlier in the year, many people are feeling unsure about how the KiwiSaver changes will impact their savings — and their weekly budget. If you’ve been wondering what this all means for you, you’re not alone.
I’ve pulled together a simple breakdown so you can feel clear, informed, and confident about your next steps.
1️⃣ Government Contributions Are Changing
Right now, if you contribute $1,043 between 1 July 2024 and 30 June 2025, you receive around $520 in government contributions — a great boost to your retirement savings.
👉 This has been the last year you’ll receive the higher 50% contribution.
From 1 July 2025, the government’s contribution will reduce to 25%, meaning you’ll get around $260 instead of $520.
2️⃣ Employees: Double-Check Your Contributions
Most wage and salary earners automatically reach the $1,043 by the 30th June through payroll deductions.
But every year I see people fall just short — often without realising it.
A quick check with your KiwiSaver provider or IRD can help you confirm your total.
And if you’re unsure where to look, send me a message and I can walk you through it.
3️⃣ Contribution Rates Are Increasing in 2026
Starting 1 April 2026, the minimum contribution for both employees and employers will increase from 3% to 3.5%.
Then, from 1 April 2028, both rates will move up again to 4%.
This will have an effect on your:
- ✔️ Take-home pay
- ✔️ Weekly budget
- ✔️ Long-term savings
Understanding the impact now can help you make smoother financial decisions later.
If you'd like me to calculate what the new contribution rates mean for your income, just let me know. I can break it down in a simple, personalised way.
4️⃣ Want to See How These Changes Affect You Specifically?
The KiwiSaver calculator on sorted.org.nz has already been updated with these new changes. It’s a helpful tool — but it can feel overwhelming if you’re not sure what to enter or how to read the results.
You don’t need to figure this out alone.
If you'd like me to take a look at your situation, I’d be more than happy to help.
Sometimes a conversation is all it takes to make everything feel clearer.
🌟 Need Help or Have Questions?
If you’re feeling unsure about:
- Whether you’ve contributed enough this year
- How the new contribution rates will affect your pay
- What these changes mean for your long-term retirement savings
…you’re welcome to reach out.
💬 Simply reply to this email — I’d love to help you make sense of it all.
Let’s make sure your KiwiSaver is working for you, not causing stress.
Warmly,
Kara Northcott
Financial Educator & Facilitator
Helping everyday people feel confident and in control of their money
027 666 6784
📩 kara@financialconsultant.co.nz
🌐 kara-northcott-financial-consultant.kit.com
