Kiwisaver Changes Budget 2025

Budget 2025: Key KiwiSaver Changes

The government announced some key changes to the KiwiSaver scheme in its Budget 2025 announcement.  The key changes are:

• The government contribution will be cut from 50 cents to 25 cents per $1, with the maximum reduced to $260.72 from July 2025. (You must be contributing minimum $1042.86 per year to receive this full entitlement)
• Eligibility for KiwiSaver contributions will be expanded to include 16+17 year old Kiwis - they will be eligible for Government Contributions 1 July 2025 and Employer Contributions from 1 April 2026.
• The default contribution rate will also be increasing - from the current 3% up to 3.5% starting in April 2026, and then to 4% from April 2028.
• There is a temporary opt down option to stay at 3% if you feel unable to afford increase
• There will be a new income cap of $180,000, above which Kiwis will no longer be eligible for the government contributions.