When it comes to KiwiSaver, investment returns play an important role — but how much you contribute over time can make just as much difference to your balance at retirement.
With changes to KiwiSaver contribution rates already underway and more planned for the years ahead, now is a good time to understand how even small increases today can add up over the long term.
From 1 April 2026, the minimum KiwiSaver contribution rate for employed members increases to 3.5% from your take home pay, with a matching 3.5% contribution from your employer.
Looking further ahead, from 1 April 2028, these minimum rates are scheduled to increase again to 4% from you and 4% from your employer — meaning more money going into your KiwiSaver over time, without you needing to make any changes.
These changes are designed to help New Zealanders build stronger retirement savings over time. But for those who can afford to contribute more than the minimum, the long-term impact can be even more significant.
Let’s imagine Sarah, who:
From April 2026, Sarah’s KiwiSaver contributions will automatically increase, with more coming from both her pay and her employer. But what if she chooses to contribute a little more herself?
Using the Sorted calculator, here’s how Sarah’s estimated KiwiSaver balance at retirement* could look at different contribution levels:
The power of higher contributions comes down to time and compounding. Money added earlier has longer to grow, and each contribution builds on the last.
Even a small increase — whether permanent or temporary — can meaningfully improve your future balance, without needing to chase higher returns or take on extra risk.
Everyone’s situation is different. Income, goals, family commitments and timeframes all matter.
A helpful starting point is the Sorted KiwiSaver calculator, which lets you explore how different contribution rates could affect your balance over time.
And if you’d like help thinking it through, your Adviser or the team at Aurora are here to help. A conversation can help you understand what level of contribution feels realistic for you — now and into the future.
Get in touch:
0800 242 023
hello@aurora.co.nz
*The examples shown are based on calculations from the Sorted KiwiSaver Retirement Calculator. They assume a 25-year-old employed member earning $75,000 per year, with an existing KiwiSaver balance of $20,000, invested in a growth fund, and not planning to use KiwiSaver for a first home. Figures are shown in today’s dollars and take inflation into account. Full details of the Sorted calculator assumptions are available on the Sorted website.