What the April 2026 changes bring to your KiwiSaver future

Updated 17 March 2026
First published 22 May 2025

Reading time: 4 minutes

By Tom Hartmann, 6 comments

Change is here! Employees are stepping up contributions to at least 3.5%, employers are too, and 16-year-olds now get matching contributions from employers and the government as well.

Last year’s Budget included some meaningful improvements to how our KiwiSaver system works. So, whether you’re saving for your first home or long-term planning for retirement, let’s unpack what that means for you.

Here are the changes:

Employee and employer contributions are moving from at least 3% to 3.5% on 1 April, then to 4% in April 2028. (They can still be kept at 3% temporarily if needed.)
Those aged 16 and over are eligible for government contributions (that started last July, with the first year paying out next July) and employer contributions.

You can see how much of a difference all this makes to you by using our KiwiSaver calculator. Be sure to pop in what your contributions are currently and our calculator will adjust to reflect all of the new changes which are relevant to you.

More money flowing towards funds

First things first: let's look at how the default KiwiSaver contribution rate for both employees and employers is going up. Starting 1 April, contributions will rise from 3% to 3.5% of your pre-tax salary or wages. By 1 April 2028, that will increase again to 4%.

Those contributing 3% now need to up your game, although it will happen automatically. Your employers need to step up as well and match the 3.5% (although that does get taxed, so it’s somewhat less than what you put in).

Now if you’re thinking, “But I’m already feeling the pinch – how will I manage the higher contributions?” – don’t worry. Anyone unable to contribute at these higher rates can temporarily stick to 3%.

You can stay at 3% for up to 12 months at a time, and you can renew this lower rate before being automatically bumped up to 3.5% and eventually to 4%. How much of a difference will this make to you? We've upgraded our KiwiSaver calculator to run your numbers.

All these higher contributions mean more money going into your KiwiSaver account, and that’s money you won’t just save – it’ll be invested and thanks to compounding interest will grow over time.

Think of it as giving your future self a bigger boost. Every dollar you save now means a lot more in the long run.

Younger earners get in earlier on the KiwiSaver action

There’s good news for the younger crowd, too. Starting 1 July, 16- and 17-year-old teens became eligible for government contributions for the year, which will land in their KiwiSaver accounts in July 2026.

From 1 April, they will also be eligible for employer contributions.

It's important to know that 16- and 17-year-olds won’t be automatically opted in to KiwiSaver like those 18 and over though. They need to sign up to KiwiSaver with a parent’s permission.

If you’re in this age bracket, you’re getting up to two extra years to grow those additional savings – and that’s two more years of investment returns and compounding working in your favour. But you will need to make it happen.

The bigger picture: more for your first home or retirement

Higher contribution rates mean you’ll have more money working for you. If you’re saving for your first home, that bigger KiwiSaver balance could make all the difference when it comes to your deposit. If you’re planning for your retirement, those contributions will grow over time, helping you achieve a more comfortable and secure future.

Think of KiwiSaver like planting a tree. With the right care – regular contributions, a solid investment strategy and a bit of patience – you’ll watch it grow into something meaningful. These changes are designed to give your KiwiSaver tree a bit more sunlight and water, so it thrives.

See what these changes mean for you by using our KiwiSaver calculator

How much of a difference could all this really make? Our KiwiSaver calculator is here to help. By plugging in your salary, wages, contribution rate and current balance, you’ll get a clear picture of how these adjustments will impact you over time.

The tool has been updated to reflect the latest KiwiSaver settings rolled out, so you’re seeing the most accurate numbers.

It’s a great way to get an idea of how much you can expect to have when you retire – and whether you’re on track to meet your long-term goals. And if you find yourself a bit underwhelmed by the estimates, there are key levers you can pull to alter your future even more for the better.

About the author

With a background in journalism and finance, Tom is Sorted’s personal finance lead. He loves the way our anxiety about money reduces when we get things sorted, and how seemingly tiny tweaks deliver big results over time.

Real-life read: Tāwera

Comments

Anonymous | 26 February 26

Can you please update your calculator to show 3.5%
Replies
- Tom from Sorted | 27 February 26
  
  Cheers, it's already calculating those higher contribution rates behind the scenes (3.5% as of 1 April, 4% as of April 2028) for you, and you'll see 3.5% appear in the tool on 1 April.
Tom from Sorted | 22 July 25

Hi Adrienne, yes, contact your KiwiSaver provider for details on how to get this done.
Adrienne Smith | 19 July 25

Am I able to access my KiwiSaver money on the day I turn 65?
John | 23 May 25

The improvements to KiwiSaver are well overdue by government.
If we are to succeed as a country in this space we need continuous uplifts to contribution rates.
You only need to look to Australia who does retirement savings well.
David | 22 May 25

Is Sorted government-funded or government-run? Because this is total propaganda. The higher default employer contribution will likely just lead employers to take the extra percentage they have to pay out of the total salaries they currently pay - offering slightly less for new hires (and maybe even current employees) to compensate for the increased rate. Why do you think companies will cop the economic harm this one time? The government has just decapitated pay equity, and cut government KiwiSaver contributions in half, but we should be thankful? I don't care that I save more of my own money by saving more of my own money. I care that I get $260 less per year in free government contribution-matching.
Anonymous | 22 May 25

Don’t try and pitch this as a good thing. It’s going to cost kiwis more every pay at a time when the cost of living is far too high. This is terrible news.