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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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.&nbsp;
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.
LISTEN ABOVE

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Whether you’re a small business owner or interested in what’s going on in the Big End of Town, this podcast encompasses the sharpest voices and minds in the world of business.

Best of Business is the home of all things business at Newstalk ZB, from morning market updates right through to incisive interviews with New Zealand’s top business leaders and decision makers. Whether you’re a small business owner or interested in what’s going on in the Big End of Town, this podcast encompasses the sharpest voices and minds in the world of business.

Best of Business is the home of all things business at Newstalk ZB, from morning market updates right through to incisive interviews with New Zealand’s top business leaders and decision makers.

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Lisa Dudson: finance expert on the Government's new changes to KiwiSaver

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/717d0370-d236-449a-9fdb-b2e700034a0b/transcript