In a bid to boost Kiwis' retirement savings, the Government is increasing the default KiwiSaver contribution rate to 3.5 percent next year and then 4 percent by April 2028. 

The scheme will also be extended to 16 and 17-year-olds from April 1, 2026 - they will need to opt in, as the automatic enrolment will remain at 18.

The Government contribution rate, however, will reduce by half, from 50c for each dollar a member contributes to 25c, from July 1 this year.

In addition, those earning over $180,000 will no longer receive a Government contribution.

Finance expert Lisa Dudson says these changes will help people build up more for their retirements and first home deposits - but there's concerns as to how it will impact low-income earners.

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