From 1 April, a number of changes to KiwiSaver have come into effect. I wanted to highlight these so you’re aware of how they may impact your savings and future plans.
Key KiwiSaver updates:
- Minimum contribution rate increase: The default minimum employee and employer contribution rate has increased from 3% to 3.5% of your gross salary or wages.
- Government contribution adjustments: The maximum government contribution has been reduced to $260.72 per year (down from $521.43), depending on your level of contributions.
- Auto-enrolment updates: Default settings for newly enrolled members now reflect the higher contribution rates.
- Withdrawal and eligibility changes: Minor refinements to rules around accessing funds in certain situations (e.g. hardship or first home).
- Improved disclosure requirements: Greater transparency around fees, performance, and fund details.
- Administration updates: Enhancements to how schemes are managed and how members are supported.
These changes are a good reminder that KiwiSaver isn’t something to “set and forget.”
Now is a great time to review your KiwiSaver to ensure:
- Your fund type still aligns with your risk tolerance
- Your contributions match your current goals
- You’re on track for key milestones like buying your first home or retirement
- You’re making the most of available contributions and benefits
If it’s been a while since your last review, or if your circumstances have changed, I encourage you to get in touch. Even a quick review can make a meaningful difference to your long-term outcomes. I also encourage any of your family or friends to get in touch, you’re welcome to refer them.