For most New Zealanders, KiwiSaver is their first step into investing. It is a powerful way to plan for retirement and, for many, a pathway into their first home. To really get the most out of it, you need to make smart choices around where you invest, how much you contribute, and how you take advantage of government support. With more than 3.4 million members, KiwiSaver has become central to New Zealand’s financial future.
Here are some practical ways you can make your KiwiSaver work harder in 2025-2026.
Secure the government contribution
On July 1, 2025, the government contribution reduced, dropping from 50 cents to 25 cents for every dollar you contribute. This means the maximum you can receive will halve from $521.43 to $260.72 each year, and those earning more than $180,000 will no longer be eligible.
Despite this, it is still worth maximising the benefit. In fact, recent analysis shows that more than $520 million in government contributions went unclaimed in the last year because members did not contribute enough to qualify. Even small top-ups can help you reach the annual threshold and unlock extra money that compounds over time.
Pick the right fund for your stage of life
If you never made an active choice, chances are you are in a conservative fund. While lower risk, these funds usually deliver smaller returns over the long term. If you are years away from retirement or not planning a first-home withdrawal soon, moving into a balanced or growth fund could deliver stronger outcomes. A difference of just 1 percent in long-term returns could add up to tens of thousands more in retirement.
Review your contribution rate
Currently, you can contribute 3, 4, 6, 8, or 10 percent of your salary. From April 2026, the default rate will rise to 3.5 percent and then to 4 percent in 2028.
If you can afford to contribute more now, even a small increase will make a noticeable difference. For example, a 35-year-old earning $50,000 who lifts their contributions from 3 to 4 percent could have around $40,000 extra by age 65.
Keep an eye on how your contributions are calculated
It is also worth checking with your employer whether KiwiSaver contributions are on top of your salary or included within it. This affects both your take-home pay and how much is invested each payday.
Get expert advice
Every KiwiSaver journey looks different. Whether you are saving for your first home, or you are decades from retirement, the right fund choice, contribution rate, and use of government incentives can make a big difference to your future balance.
Our advisers are here to help you review your options and make decisions that fit your goals.
Complete the form below to book your free KiwiSaver consultation with one of our advisers.
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