This change was announced by the Government as part of its 2025 Budget and is designed to help New Zealanders grow stronger savings over time — whether you’re working towards a first home or planning for retirement. What this means for you depends on the contribution rate you’re on today.
You don’t need to take any action for the new rate to apply – it will update automatically from 1 April 2026.
Increasing your KiwiSaver contribution rate might not be right for you at the moment. Everyone’s financial situation is different, and so is what feels manageable.
If you’d prefer to keep contributing at 3%, you can apply to the Inland Revenue for a temporary KiwiSaver rate reduction.
This gives you flexibility to stay at your current rate for a period that suits your circumstances, while keeping the door open to increase it later when it suits you better.
Here’s how it works:
If you apply in time, the reduced rate will take effect from 1 April 2026, when the new default rate begins. Otherwise, you can apply at any time for a temporary rate reduction.
You can find step-by-step guidance on how to apply on Inland Revenue’s website, including how to revoke the temporary rate reduction if you change your mind and want to contribute 3.5%.
Contribution rates will be updated in payroll systems from 1 April so we recommend you check your payslip after this date to make sure the correct rate has been applied. If something doesn’t look right, let your payroll team know.
Even small increases to your KiwiSaver contributions can make a meaningful difference over the long term. While retirement might feel a long way off for some people, extra contributions now can be the difference between simply getting by, and having more financial freedom later on.
Take a look at our Booster KiwiSaver Scheme calculator to see the power of increased contributions and compounding returns!
Of course, everyone’s situation is different. If you’re wondering how this change fits with your wider financial goals — whether that’s managing day-to-day costs, planning for a first home, or thinking ahead to retirement — a conversation with a financial adviser can really help bring clarity and confidence.
As part of the Booster KiwiSaver Scheme, our in-house KiwiSaver specialists are available to all members at no extra cost. Call us on 0800 336 338 or send a message. You can talk about your goals and discuss if there are ways to fine-tune your savings so you feel more confident about the path you’re on.
If you’d prefer to work with an independent financial adviser, we can help connect you with one — because great advice, in any form, can make a big difference.
Another increase is already planned:
Read more about these recent changes on our blog.
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Booster Investment Management Limited is the issuer of the Booster KiwiSaver Scheme (Scheme). The Scheme’s Product Disclosure Statements are available at www.booster.co.nz or by contacting your financial adviser.