- Government contribution rate halved from 50c to 25c per $1 (max $260.72 per year)
- Individuals earning over $180,000 no longer eligible to receive the government contribution
- 16 and 17-year-olds become eligible for the government contribution
Keeping you informed and one step ahead.
- The default rate of employee and employer contributions will rise from 3% of before tax salary and wages to 4% in two steps. From 1 April 2026, the rate will go to 3.5% and then from 1 April 2028, it will go to 4%.
- Employees can opt to temporarily remain at the current 3% and be matched at that rate by their employer.
- 16 and 17-year-olds will be eligible to receive KiwiSaver government contributions from 1 July 2025 and employer contributions from 1 April 2026.
- The government contribution will be halved to 25 cents for each dollar a member contributes each year, up to a maximum of $260.72 from 1 July 2025.
- Members with taxable income of more than $180,000 will no longer receive the government contribution from 1 July 2025.
IMPORTANT: The changes to the government contribution will not impact government contribution entitlement for the KiwiSaver year ending 30 June 2025. This will be paid out in July/August 2025.
What's happening when?
- Payment of the government contribution for the 2024/25 year (at old rate) for eligible members
- Employee and employer Default Contribution Rate rises to 3.5%
- 16 and 17-year-olds will become eligible to receive employer contributions
- Employee and employer Default Contribution Rate rises to 4%
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FAQs
Why is the Government making changes to KiwiSaver?
The aim of these KiwiSaver changes is to support Kiwis saving more for their first home and retirement and to make the scheme more financially sustainable.
How is ASB letting its KiwiSaver members know about these changes?
We sent ASB KiwiSaver Scheme customers an email outlining the changes in late May.
Has the Government made KiwiSaver compulsory?
No, KiwiSaver is still a voluntary scheme. However, if someone starts a new job and are 18 or older, they will be automatically enrolled, and it's up to them to opt out in the required timeframe should they not want to be a KiwiSaver member.
Will we be updating our KiwiSaver balance projection tools?
Yes, will we gradually update these over time. We are currently working through what those changes look like and will provide further details when we know the full extent of any changes required.
Do members aged 16 or 17 qualify for this year's government contribution?
Yes, this change took effect from 1 July 2025. Any annual government contribution entitlement will show in KiwiSaver accounts around July/August 2026.
Do members still get their full annual government contribution entitlement for the KiwiSaver year ending 30 June 2025?
Yes, for those eligible for the annual government contribution, they will still receive 50 cents for every $1 they contribute, up to a maximum of $521. This will show in KiwiSaver accounts around July/August 2025.
What remaining benefit is there having KiwiSaver for people who don't earn a salary or wage?
KiwiSaver is still a great way to build solid savings habits. We'd encourage all New Zealanders who are able to, and especially the self-employed, to keep making regular contributions to their KiwiSaver account. Every little bit adds up, and compounds over time. And this can make a real difference when people retire or want to buy their first home.
Also, you could still get the annual government contribution of up to $260.72 (or 25 cents for every $1 contributed over the year - from 1st July to 30th June), provided your taxable income for the year is below $180,000, and you met all other eligibility criteria.
Why is the default minimum employee and employer rate being phased in?
The Government advised the increases are being phased in over a three-year period to help workers and employers plan ahead.
Get in touch
Experiencing significant financial hardship?
If you're currently experiencing financial hardship, we're here to help with any questions you may have about applying for an early KiwiSaver withdrawal.