Almost all regular KiwiSaver contributors have remained on the higher contribution rate three months after it took effect, Finance Minister Nicola Willis has announced.
Of the approximately 1.8 million members who contribute through employee deductions, 99.5% stayed on the increased rate that came into force on 1 April 2026. Just 9,300 contributors opted out, choosing to remain on the previous 3% rate.
The default contribution rate rose from 3% to 3.5% in April, lifting combined employee and employer contributions from 6% to 7% of wages or salaries. A further 0.5% increase is scheduled for 1 April 2028.
Willis said the uptake meant "hundreds of thousands of Kiwis will be better off in retirement". An 18-year-old on minimum wage who joined on 1 April will have $930,000 in KiwiSaver at age 65 if earnings follow a typical trajectory—$190,000 more than under the old 3% rate.
KiwiSaver has just under 3.5 million members. Balances can be used towards the purchase of first homes.