KiwiSaver in 2025 stands as a resilient and proven tool for wealth building.
Now in its 18th year, despite global “volatility and uncertainty,” KiwiSaver balances have continued to grow and help millions of Kiwis move closer to their retirement and home ownership goals. That’s an outstanding endorsement of KiwiSaver’s long-term benefits.
KiwiSaver is Working, But Informed Action Unlocks Its Full Potential
In the face of economic challenges, KiwiSaver is a success story:
- Total funds under management: $123.1B (up 10.1%), evidence of long-term growth.
- Total contributions hit a record $12.2B (up 8.8%).
- KiwiSaver is helping Kiwis more and more with their first home purchases with the average withdrawal amount of nearly $41,000 up 18% from last year.
- Total number of KiwiSaver members is also increasing every year (up by 11.9% in last 5 years) with approximately 63.5% of the total population being in the scheme.
- John Horner wrote “While investment markets are volatile, the data highlights the ability of diversified portfolios and sound investment management to recover strongly from downturns”
Click HERE to read the FMA’s official 2025 KiwiSaver Annual Report
But KiwiSaver is not “set and forget”.
Your situation, market conditions, and even product choices change, by meeting regularly with a knowledgeable adviser, you:
- Stay aware of new options and opportunities.
- Understand the real effect of your contributions and fund choice over time.
- Ensure provider fees are fair and you’re getting maximum value.
- Avoid the risk of being one of the rising number of non-contributors or those stuck in the wrong fund. With over 41% of new KiwiSaver members during the year being enrolled through one of the six default KiwiSaver funds.
Changes We’ve Seen This Year
- Government Contribution Reduced (from 1 July 2025)
To receive the now-lower maximum government top-up of $260.72, you’ll need to contribute at least $1,042.86 per year, and only those earning under $180,000 remain eligible — meaning regular contributions matter more than ever. - Default Contribution Rates Increasing
Employee and employer minimums will gradually rise from 3% to 3.5% in 2026, then to 4% in 2028, which will help grow balances faster — especially for first-home buyers. - Temporary Contribution Flexibility
You can still drop back to 3% for up to 12 months during financial pressure, giving short-term relief while still ensuring contributions return to the new higher minimum. - Possible Future Increases to 12% Total
If planned policy continues, contribution rates would rise to 6% employee + 6% employer by 2032, bringing KiwiSaver in line with Australia’s strong retirement model and significantly boosting long-term outcomes. - Younger Workers Now Receive Contributions
Working 16–17-year-olds will get both government and employer contributions, giving them a valuable head start on home ownership and retirement wealth. - First-Home Withdrawal Rules Remain the Same
You can still use KiwiSaver toward your first home — and increased contribution rates mean many first-home buyers could build their deposit faster.
Find a full summary of 2025 KiwiSaver changes HERE
Why Should Everyday Kiwis Talk to an Adviser Right Now?
1. Your Contributions Matter, Small Changes Make a Big Difference
- Even modest increases to your contribution rate have a powerful effect on your final retirement outcome, thanks to compounding returns.
- The report shows a worrying rise in non-contributing members (40.6%), highlighting a risk that many are falling behind needlessly.
- An adviser can help you understand the long-term impact of various contribution rates, and find a sustainable level, even moving from 3% (current minimum) to 4% can make a big difference.
2. The “Right Fund” is Different for Everyone And it Changes Over Time
- Nearly half of all KiwiSaver balances are now in growth funds, reflecting growing confidence and understanding that the right fund choice boosts long-term results.
- Your ideal fund depends on your age, goals (first home, retirement, or drawdown), and how comfortable you are with risk. Advisers are uniquely placed to educate you on these nuances, so you’re aligned for your goals, not left behind by default.
- More providers are also introducing new, diversified investment products, which means reviewing your settings regularly is key to making the most of evolving opportunities.
3. Fees and Returns, Value Matters
- KiwiSaver fees overall have stabilised, but returns after fees can vary significantly by provider and fund type.
- Knowing your “net returns” (after fees) is crucial. Comparing these is not easy without support, an adviser can translate the numbers and check you’re getting real value.
One Piece of Advice
“KiwiSaver is an outstanding foundation for building your future wealth, get the most from it by reviewing your contributions and fund choice annually with an adviser who can explain your options, and help you make changes that could multiply your final savings. Little tweaks now, guided by strong advice, can make a world of difference at retirement or when you buy your first home.”
– Johan Bruijn, KiwiSaver Adviser – The Wealth Supply Co
If you’re unsure whether your KiwiSaver is set up the smartest way – Let’s chat!
A quick, zero obligations review is free and could mean thousands more in your first home or retirement savings.
