31/03/2026
📢 KiwiSaver Update: Changes Effective 1 April 2026
As of today, the default KiwiSaver contribution rates have officially increased. If you are an employee or an employer, here are the facts you need to know:
🔹 The Rate Change
The default contribution rate for both employees and employers has increased from 3% to 3.5%.
• Automatic: If you are currently on the 3% rate, this change happens automatically through payroll.
• 16 & 17-Year-Olds: Employers are now required to pay the 3.5% employer contribution for employees in this age bracket, provided the employee is also contributing.
🔹 Impact on Weekly Wages
For a person on a $70,000 annual salary the shift to 3.5% means:
• Employee Deduction: An extra $6.73 per week from your gross pay.
• Employer Match: gross extra $6.73 per week added to your account.
• Annual Total: Approximately net $595 extra invested in kiwisaver each year.
🔹 The "Cost" of Fund Choice
While contribution rates have risen, your fund type (Conservative vs. Growth) remains the largest driver of your final balance. For a 30-year-old on a $70k salary, the projected difference at age 65 can be significant:
• Conservative Fund (Avg. 4.3% return): Estimated $268,000 balance.
• Growth Fund (Avg. 8.3% return): Estimated $625,000 balance.
• The Gap: Remaining in the "wrong" fund for your timeline could result in a $357,000 difference in your retirement nest egg.
✅ Action Step
With the new rates in effect, today is the day to verify your settings.
1. Check your next payslip to ensure the 3.5% rate is applied.
2. Review your Fund Type to ensure it aligns with your retirement or first-home timeline.
If you would like a review of your current KiwiSaver provider, fees, or fund choice, send me a message for a 15-minute check up.
