KiwiSaver HINTS FOR A BETTER RETIREMENT
Useful KiwiSaver tips, ideas and suggestions to help you enjoy a long and prosperous retirement.
We are not affiliated with any financial products or funds. We provide free independent financial planning and retirement planning advice. You can Download our free retirement planning guide and learn how to quickly see if you will have enough money for the retirement you deserve.
KiwiSaver Help Articles
- Check your KiwiSaver performance each year
- How safe is your KiwiSaver Top-Up?
How Safe is your KiwiSaver top-up?
Relying on the Government to support you into your retirement, is not a safe Retirement Plan, as the Government could change the rules at any time – and with little consultation.
In February 2022 “David Clark, the pre Covid Minister of Commerce and Consumer Affairs (and mountain biking), told insurers at a Financial Services Council summit, that he had ordered a review of KiwiSaver, but would not be drawn on the changes being considered.”
Fortunately, he had forgotten about his letter of the 13th of December 2021 the prior year to the Retirement Commissioner: Jane Wrightson, outlining the terms of reference of the KiwiSaver review.
This public document sets out the topics the Government requested to be addressed in the review. While most of the letter outlined the reasons the Labour Government was not considering all the other recommendations made in the previous 2019 review (also undertaken by the Retirement Commission), a couple of paragraphs were provided in regard to what he had asked to be reviewed in the 2022 KiwiSaver review.
Clark also said had said “no decisions had been made on whether any changes would be made to KiwiSaver, but it is around 14 years since KiwiSaver was introduced and so it is an appropriate time to review settings to ensure they are fit for purpose.”
Roll-on 2025, a change of Government and National has adopted the first of many of the recommendations made in the latest Retirement Commission review findings.
From July 1, 2025, the government's KiwiSaver contribution will be halved to 25 cents for every dollar contributed, with the maximum annual contribution dropping to $260.72. Additionally, members earning over $180,000 per year will no longer be eligible for this contribution.
They also increased the default employee and employer contribution rates, from 3% to 3.5% on April 1, 2026, and to 4% on April 1, 2028.
Coupled with additional calls for changes to the eligibility rules for Superannuation (e.g. raising the age, income or means testing), relying on the Government to financially support you to have the lifestyle you deserve in retirement is a high risk strategy. It could change at any time, with little pre-warning.
Planning properly now for your retirement, and being able to see now the impacts turning off the Government Contribution, or NZ Super could have on your Retirement, could save a lot of distress in the future. Download our free Excel Retirement Planning Spreadsheet to see how to use it as a “crystal ball” into your financial future.
Planning properly now for your retirement, and being able to see now the impacts turning off the Government Contribution, or NZ Super could have on your Retirement, could save a lot of distress in the future. Download our free Excel Retirement Planning Spreadsheet to see how to use it as a “crystal ball” into your financial future.