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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Jack Tame’s crisp perspective, style and enthusiasm makes for refreshing and entertaining Saturday morning radio on Newstalk ZB.News, sport, books, music, gardens and celebrities – what better way to spend your Saturdays?

Saturday Morning with Jack Tame

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

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/d4598a1d-fa1a-47c6-abc5-b2e700035309/transcript