There are some important KiwiSaver changes on the horizon, and they’re good news for your financial future.

From 1 April 2026, the government is increasing the minimum contribution rate for both employees and employers from 3% to 3.5%. At the same time, 16- and 17-year-olds will become eligible for employer contributions for the first time.

While these updates might sound small, over time they can have a meaningful impact on your long-term savings.

Here’s what you need to know.

A 0.5% increase now, more for your future

If you’re currently contributing the minimum of 3%, your rate will automatically rise to 3.5% from 1 April 2026. Your employer’s minimum contribution will increase by the same amount.

That means more money going into your KiwiSaver account, helping it grow faster over time.

It’s a modest change in the short term, but the long-term benefits add up. Even an extra 0.5% per year can significantly boost your balance by the time you retire or buy your first home, especially when you factor in compounding returns. You don’t need to do anything to activate the change. It will apply automatically unless you’re already contributing above 3.5%.

More support for younger KiwiSaver members

From April, employers will begin contributing to KiwiSaver accounts for 16- and 17-year-olds. Until now, those under 18 were not entitled to employer contributions, even if they were working and contributing themselves.

By extending employer contributions to younger members, this change helps young Kiwis build momentum earlier, supporting future goals like buying their first home or preparing for retirement.

What if you’re not ready to increase your contributions?

We understand that every financial situation is different. From 1 February 2026, you’ll be able to apply for a temporary exemption to stay at the current 3% rate for up to 12 months. Employers can also agree to continue contributing at 3% for that period.

Your next step: Stay informed and make the most of it

These changes will apply automatically, so there’s nothing you need to do right away. But it’s a good opportunity to take stock and set yourself up for success. You might want to:

• Review your contribution rate and check whether you’re comfortable with the new default or want to go further
• Talk to a KiwiSaver specialist if you’re unsure how the change fits into your plan
• Encourage younger family members to enrol in KiwiSaver if they’re working and eligible

At Aurora Capital, we’re here to help you make the most of every opportunity to grow your wealth and secure your future. The changes coming in April are another step toward better long-term outcomes for all New Zealanders, and we’re proud to support that journey.
Let’s keep growing prosperity together.

Want to talk things through?

Talk to your Adviser today or get in touch with the Aurora Client Care Team
0800 242 023
hello@aurora.co.nz