KiwiSaver: Why Your Contributions Matter More Than Ever

From 1 July 2025, the Government contribution to KiwiSaver has been cut in half. The maximum you can now receive each year is $260.72, compared to the previous $521.43. You’ll still need to contribute at least $1,042.86 each year to get the full amount, but if you earn over $180,000 a year, you’ll no longer be eligible for it.

The change makes your own contributions the real driver of your KiwiSaver balance. While the Government top-up is still worth claiming, it’s now a smaller part of your total growth. Employer contributions (if you’re employed and contributing) remain an important boost, but the long-term results will come down to what you put in and how consistently you do it.

Why this matters
Even small increases in your contribution rate can have a big impact at retirement. For example, going from 3% to 4% on a $75,000 salary means an extra $750 a year going into your account. Over decades, that difference can add up to tens of thousands more, depending on your investment returns.

When to review your contributions

• After a pay rise
  
  
• When you return to work after a break
  
  
• If you change jobs or income levels
  
  
• Each year before 30 June to ensure you’ve met the $1,042.86 minimum
  
  

KiwiSaver is still one of the easiest ways to grow your savings for retirement or a first home, but now more than ever, the key is making sure you’re contributing at the right level. At Invicta Financial, we help you check your rate, review your fund, and make sure your KiwiSaver is working hard for your goals.