Most employed Kiwis should contribute at least 3.5% to KiwiSaver from 1 April 2026, as this is the new default rate. At a minimum, you should contribute enough to receive your full employer match and the maximum Government contribution of $260.72 per year (which requires contributing at least $1,043 annually). If you can afford to, increasing your rate to 4% or more can significantly boost your retirement savings over time.


If you’ve ever typed “how much should I contribute to KiwiSaver?” into Google or asked ChatGPT the same question, you’re not alone. It’s one of the most common KiwiSaver queries in New Zealand.

Short answer: contribute at least enough to get the full Government contribution and your employer match. From 1 April 2026, that means a default minimum of 3.5% of your salary. If you can afford to contribute more, even small increases can make a meaningful difference over time thanks to compounding returns. Let’s unpack what that actually means for you.

What are the current KiwiSaver contribution rates?

KiwiSaver contributions usually come from three places:

• You (employee contributions)
• Your employer
• The Government (if eligible)

Employee contribution rates

If you’re employed, you can choose to contribute:

• 3.5% (default from 1 April 2026)
• 4% (default from 1 April 2028)
• 6%
• 8%
• 10%

Before 1 April 2026, the default rate was 3%. That has now increased to 3.5%, with another increase to 4% planned to come in 2028. Inland Revenue (IRD) outlines the updated contribution settings here: https://www.ird.govt.nz/kiwisaver-changes.

If you do nothing, your contribution rate will automatically sit at 3.5% from 1 April 2026.

Employer contribution

If you’re a KiwiSaver member and you contribute from your pay, your employer must generally* match your contribution at the same minimum rate. So if you contribute 3.5%, your employer contributes 3.5% (before tax). Unless your employer offers a Total Renumeration package (which the Retirement Commission has discussed recently here), this is generally a great added benefit to your pay package. Opting out of KiwiSaver contributions means walking away from that additional employer money.

*Unless your employer is already contributing to another eligible scheme for you, or you are outside of the eligibility age - from 1 April, this will be between 16-65).

How much do I need to contribute to get the full Government contribution?

To receive the full Government contribution, you must:

• Be aged 16 or over (and under 65)
• Contribute at least $1,043 between 1 July and 30 June (not including Australian pension transfers or employer contributions)
• Be earning less than $180,000 before tax per year
• Be living primarily in New Zealand as a resident or citizen

If you meet those eligibility criteria, the Government contributes up to $260.72 per year to your KiwiSaver account. If you contribute less than $1,043 and meet the rest of the eligibility criteria, you could receive a partial amount. You can read more about the Government contribution on the IRD website here.

For most people earning over roughly $30,000 per year and contributing the default 3.5%, you’ll automatically exceed the $1,043 threshold through payroll deductions.

So at a bare minimum, most Kiwis should contribute enough to:

• Get their full employer contribution
• Get the full Government contribution

Anything less could mean missing out on money that’s available to you.

Is 3.5% enough for retirement?

For some people, 3.5% could be fine. For others, it may not be enough.This can depend on a range of factors:

• Your age
• Your retirement goals
• Whether you own a home
• Your income
• How long you’ll be contributing

If you’re in your 20s or 30s and can afford to increase your contribution to 4% or more, the long-term impact can be significant. Even increasing your contribution by 0.5% or 1% can compound to mean thosands more towards your retirement savings over 30 to 40 years. If you’ve read our blog on the power of compounding returns, you’ll know that time and consistency often matter more than dramatic one-off moves.

KiwiSaver is often the largest investment many Kiwis will ever have. Small percentage changes today can mean tens of thousands of dollars difference at retirement. You can model different contribution rates using Sorted’s KiwiSaver calculator: https://sorted.org.nz/tools/kiwisaver-calculator

When might contributing more make sense?

You might consider increasing your KiwiSaver contribution if:

• You’ve recently had a pay rise
• You’ve reduced other debt
• Your mortgage payments or other major costs have fallen 
• You feel behind on your retirement savings

*Note, increasing your KiwiSaver contributions is not the only option based on any of these things happening. KiwiSaver contributions are generally locked in and can only be withdrawn under limited circumstances (i.e for a first home, hardship withdrawal or at retirement). For this reason, you may choose to invest any extra savings you have outside of KiwiSaver (in less restricted schemes) so ensure that you do your research and seek independent financial advice should you need it to help make financial decisions.

For many people, KiwiSaver is a simple way to build wealth because:

• Contributions are automatic
• Employer contributions are built in
• Government contributions can boost your balance
• There's a range of diversified fund options to choose from
  
  

It’s also worth remembering that your contribution rate is only one part of the equation. Fund choice, fees, and your KiwiSaver provider matter too. Sorted has a great guide on how to pick the right KiwiSaver fund and provider for you here: https://sorted.org.nz/guides/kiwisaver/kiwisaver-which-fund-suits/

When might it make sense to contribute less?

Life isn’t linear. There may be times when you need more cash flow or can't afford to contribute as much to your long-term savings.

You might want to temporarily reduce your contribution rate if:

• You’re facing short-term financial pressure
• You’re saving hard for a home deposit (although in many cases, your KiwiSaver can be used to contribute towards your first home deposit)
• You’re paying off high-interest debt

It can be worth working with a financial mentor or adviser before making decisions like this. Your KiwiSaver provider may be able to point you towards someone who can help.

You can change your contribution rate through your payroll team or via myIR:  https://www.ird.govt.nz/kiwisaver/kiwisaver-individuals/making-changes-to-my-kiwisaver/changing-my-kiwisaver-contribution-rate.

Just be mindful that if your total annual contributions drop below $1,043 between 1 July and 30 June (the KiwiSaver year), you may not receive the full Government contribution of $260.72.

What if I’m self-employed?

If you’re self-employed or not earning PAYE income, you won't receive automatic employer contributions. You choose how much and how often to contribute.

To receive the full Government contribution, you still need to contribute at least $1,043 per KiwiSaver year. Many self-employed Kiwis set up automatic payments to ensure they stay consistent and reach the minimum amount to receive the Government contribution, while also regularly saving towards their first home or retirement.

How do I change my KiwiSaver contribution rate?

If you’re employed, you can:

• Ask your payroll team to update your rate
• Complete a KS2 deduction form
• Update your details through myIR

More information on changing your contribution rate is available here: https://www.ird.govt.nz/kiwisaver/kiwisaver-individuals/changing-my-contribution-rate. Changes yo make to your contribution rate usually take effect from your next pay cycle.

Don’t forget your fund type

Your contribution rate matters. But so does how your money is invested. Being in a conservative fund in your 20s could impact your long-term outcome more than contributing an extra 0.5%. On the flip side, being in a high growth fund close to retirement may not suit your comfort level. 

You can review your annual KiwiSaver statement to check:

• Your contribution rate
• Your employer contributions
• Your fund type
• Your fees
• Your total balance

If you’re unsure whether your current KiwiSaver settings align with your goals, it may be worth reviewing both your contribution rate and your fund choice together. Again, it could also be worth seeking independent financial advice if you need some help.

TLDR: How much should I contribute to KiwiSaver?

• Contribute at least enough to receive the full Government contribution of $260.72 per year.
• From 1 April 2026, the default minimum rate is 3.5%.
• If you can afford to, you could consider increasing contributions to 4% or more.
• Make sure your fund type matches your time horizon and risk appetite.
• Review your contribution rate when your income changes.
• Seek independent financial advice if you are unsure or need some help.

KiwiSaver is one of the simplest long-term investing tools available to New Zealanders. The “right” contribution rate isn’t one-size-fits-all, but the key is making an active decision rather than defaulting without thinking.

The information provided and opinions expressed in this article are intended for general guidance only and not personalised to you. These materials do not take into account your particular financial situation or goals and are not financial advice or a recommendation. This article is not intended to convey any guarantees as to the future performance of any of the investment products, asset classes, or capital markets mentioned. Past performance is no guarantee of future performance. Information is current at the time of posting, and subject to change without notice. Simplicity NZ Ltd is the issuer of the Simplicity KiwiSaver Scheme and Investment Funds. For Product Disclosure Statements please visit our website simplicity.kiwi.