KiwiSaver is going through a period of change.
As part of the 2025 Budget, the Government announced reforms for the investment scheme.
Employee and employer contribution rates are set to rise while government contributions will reduce.
If you’ve recently moved to New Zealand from the UK, or you’re thinking about transferring a UK pension to this country, the changes might influence how you expect KiwiSaver to fit into your retirement and investment planning.
Here’s what you need to know.
What’s changing in KiwiSaver?
There are a few key changes to be aware of.
Over the next few years, the minimum contribution rate required of both employees and employers will increase in stages, from 3 percent to 4 percent.
But as of July 2025, the maximum Government Member Tax Credit available to qualifying members who contribute at least $1042.86 a year to the scheme will halve, to $260.72.
People who earn more than $180,000 a year will not receive any government contribution at all, but those aged 16 and 17 will be entitled to receive employer and government contributions for the first time if they meet the qualifying criteria.
Some KiwiSaver providers have said that the higher contribution rates are still not likely to be enough, and suggested New Zealand should aim for Australia’s contribution rate of 12 percent.
What this means for expats and pension transferees
If KiwiSaver is part of your investment picture, this could be a good opportunity to assess how it fits into your broader plans.
The Retirement Commission suggested that those who are self-employed are likely to be left worse off because of the reduction to the Government Member Tax Credit
This might also be a suitable time to check what balance you’re likely to achieve in KiwiSaver with the new contribution rates, and how much that will contribute to your retirement income.
What to think about now
You might have a number of questions, which we can help you work through.
Should you increase your voluntary contributions?
Increasing the amount you put into your KiwiSaver account should generally boost your retirement savings outcome.
If you’ve moved to New Zealand at 50 and are starting from scratch in a balanced KiwiSaver fund, earning $100,000 a year and contributing 4 percent plus 4 percent from an employer, Sorted’s calculator estimates you’ll save $124,000 by age 65. If you increase that contribution rate to 10 percent, you could have more than $230,000 saved.
How does KiwiSaver compare to your UK pension in terms of flexibility, tax, and drawdown options?
There are differences in the rules for KiwiSaver and UK pensions (both those still in the UK and those that have been transferred to New Zealand).
These include the tax treatment and when you are able to access the money. When you’re planning what your retirement income will look like, it’s important to understand what you can expect from your various investments in New Zealand and the UK.
Could KiwiSaver serve as a complementary income stream alongside your transferred UK pension?
You could find that KiwiSaver provides another good option to provide for your retirement, alongside your transferred UK pension. You can maximise benefits such as the employer and government contributions, while continuing to manage the investment you’ve brought over from the UK.
We can help you to determine how the pieces may fit together.
Ready to chat?
It’s a great time to re-evaluate the role of KiwiSaver in your retirement income plan and ensure you’re getting the most out of it.
Whether you have KiwiSaver questions, or want to chat about pension transfers more generally, the expert team at Pension Transfers is here to help.
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.