KiwiSaver for Kids

KiwiSaver is often only associated with retirement, but it can also play a key role in helping young New Zealanders begin their savings journey and help them understand how money and investing works.

Whether it’s for long-term investing habits or future goals such as a first home, starting early can make a huge difference over time.

In 2025, the government announced changes to KiwiSaver for younger Kiwi, particularly for 16- and 17-year-olds, which then came into effect from 1 July 2025 and 1 April 2026.

Getting started

Children can be enrolled in a KiwiSaver scheme at any age, provided a parent or guardian gives consent. In most cases, a parent or caregiver will also take responsibility for managing the account until the child is old enough.

KiwiSaver is voluntary for those under 18, and children are not automatically enrolled through school or employment.

For younger children, contributions are typically made by parents or family members - this can be done by making a payment directly into their account via online banking. As they get older and begin earning income, they may also choose to contribute themselves.

Key benefits of KiwiSaver for under-16s

1)  Simplified process

The new regulation simplified the enrolment process for children under 16. Previously, the requirement for all legal guardians to sign could create barriers for some families. With the new rule, only one parent or legal guardian's signature is necessary, making it much easier for families to set up KiwiSaver accounts for their children.

2)  Encouraging early savings

Having only one parent or legal guardian's signature makes it simple to enrol your child into a KiwiSaver scheme. The earlier a child begins saving, the more likely it is they benefit from compound interest over time, potentially leading to a more secure financial future.

3)  Financial literacy

These changes to KiwiSaver also compliment broader efforts to improve financial literacy among young people in New Zealand. By introducing children to the concept of saving and investing at a young age, they may develop better financial habits that can serve them well into adulthood.

How KiwiSaver works for under-18s

The core features of KiwiSaver still apply to younger members:

  • Savings are generally locked in until age 65, unless withdrawn earlier for a first home or under limited circumstances
  • Funds are invested, meaning balances will rise and fall over time
  • Contributions can be made at any level, or paused if needed

There are, however, some differences depending on age and employment status.

1)  Government contributions

Eligible members aged 16 and over can now (from 1 July 2025) receive the annual Government contribution, provided they meet the minimum contribution threshold each year and eligibility criteria.

This can add up to $260.72 annually, based on contributing $1,042.86 over the year.

Members under 16 are not eligible for this contribution.

2)  Employer contributions

If a 16- or 17-year-old is employed and contributing to KiwiSaver, their employer will generally be required to make contributions as well.

This extends the existing employer contribution framework, which previously only applied from age 18, to younger workers.

3)  Contribution rates

The default minimum contribution rate increased from 3% to 3.5% from 1 April 2026, with a further increase to 4% scheduled for April 2028.

These changes apply to eligible working members, including those aged 16 and 17.

If needed, Mercer KiwiSaver scheme members can apply to temporarily reduce their contribution rate for between 3 and 12 months. More information can be found on the IRD website.

A long-term perspective

For families considering KiwiSaver for their children, the decision often comes down to time horizon and savings goals.

Starting earlier can allow more time for contributions and investment returns to accumulate. For teenagers who are working, the changes from April 2026 may make KiwiSaver a more relevant part of their overall financial position.

As with any financial decision, it may be helpful to consider how KiwiSaver fits alongside other savings or investment options. You can speak with a Mercer Financial Services NZ financial adviser for free regarding KiwiSaver, FlexiSaver, or Super Trust investments.

Call 0508 637 237 (or +61 3 8306 0971 from overseas)

Email KiwiSaver@mercer.com

Or simply fill out our online form for a call back.

Additional resources:

09 April 2026