What Budget 2025 means for your KiwiSaver account

The Government recently released its 2025 Budget, and there are some important updates to KiwiSaver you should know about. At Craigs, we’re here to help you make sense of what these changes could mean for your KiwiSaver portfolio.

Here’s a quick summary of the changes:

Contribution rates for employees and employers are going up
The default employee and employer contribution rates will increase from 3% to 4% of your pay (salary or wages).

• 3.5% from 1 April 2026
• 4% from 1 April 2028

Note: Employees will be able to temporarily opt down to the current 3% rate if needed and employers will still match that rate.

The government’s contribution is being halved.

• From 1 July 2025, instead of 50 cents for every $1 you put in, you’ll now get 25 cents for every $1 – meaning the maximum annual Government contribution will decrease from $521.43 to $260.72.

More benefits for younger Kiwis

• From 1 July 2025, 16- and 17-year-olds will be eligible for the Government contribution.
• From 1 April 2026, employers must match contributions for 16- and 17-year-olds.

High earners will miss out

• From 1 July 2025, if you earn over $180,000 a year, you will no longer be eligible for the Government’s contribution.

As these changes are implemented, we’ll continue to keep you informed with actions you may wish to take in regard to your contributions and Government contributions, to help meet your first home and retirement goals.

We’re committed to helping our clients navigate these changes and continue to make informed KiwiSaver decisions.

Learn more about the Craigs KiwiSaver Scheme here >

Learn more about Craigs Personal Wealth services here >