MMS #51 | KiwiSaver changes explained: What’s in, what’s out & what does this mean for you?

In this episode of Money Made Simple, Liv and Jennie unpack the recent changes to KiwiSaver announced in Budget 2025 - what’s changing, why it matters, and how it could impact you both now, and in the long term.

From personal contribution increases to government contribution cutbacks, it’s a mixed bag. Some changes are great, particularly for younger savers and long-term investors, but others (like the halving of the government contribution)  may feel like a step backwards.

This episode covers:

• The increase in compulsory KiwiSaver contributions from 3% to 4%, and why it’s being phased in slowly
• What the drop in the government contribution from $521 to $261 means for your savings
• The new income cap - earn over $180,000 and you’ll no longer receive any government contribution
• Good news for younger workers - 16 and 17-year-olds will now receive government contributions and next year, employer contributions
• What these changes could mean for self-employed Kiwis
• How to opt out of the increased contributions (and why that might cost you long-term)
• Why it might be time to revisit your KiwiSaver settings and contribution strategy

Whether you’re just starting out, self-employed, or looking to retire one day with a decent nest egg, this episode helps make sense of the updates and how to make them work for you.

Resources mentioned:

• Watch Shamubeel Eaqub's webinar on Budget 2025 & changes to KiwiSaver
• Latest blog on KiwiSaver changes

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Disclaimer: This podcast contains personal opinions and is intended to provide educational information only. It doesn't relate to your particular financial situation or goals and is not financial advice or recommendations. Simplicity New Zealand Limited is the issuer of the Simplicity KiwiSaver scheme and investment funds. For product disclosure statements please visit Simplicity's website simplicity. kiwi.