{"id":581474,"date":"2026-04-04T10:00:11","date_gmt":"2026-04-04T10:00:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/581474\/"},"modified":"2026-04-04T10:00:11","modified_gmt":"2026-04-04T10:00:11","slug":"kiwisaver-changes-why-teens-should-start-saving-for-retirement-early-andrew-twidle","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/581474\/","title":{"rendered":"KiwiSaver changes: Why teens should start saving for retirement early \u2013 Andrew Twidle"},"content":{"rendered":"

You can see the difference those extra years of contributing can make, not to mention the fact that in Australia, employers are required to contribute 12%.<\/p>\n

Last week, the default KiwiSaver contribution rate for New Zealand employees and employers increased to 3.5%, with a further increase to 4% planned for 2028.<\/p>\n

This is the first increase we\u2019ve seen in 13 years and while it\u2019s true that these changes will put pressure on some employers, it also seems to be broadly acknowledged that our contribution rates need to increase to deliver better retirement outcomes for all New Zealanders.<\/p>\n

Something else that will help to boost average balances is getting people on the KiwiSaver journey early. Also as of this week, employers are now required to contribute to the funds of 16- and 17-year-olds who are themselves contributing \u2013 before, this was only required for members aged 18 and over \u2013 and this age group will also now be eligible to receive the Government contribution.<\/p>\n

These are positive changes, but I wonder if we still need to do more as a society to encourage people to engage with KiwiSaver.<\/p>\n

Our own Westpac data show only 31% of our 16- and 17-year-old KiwiSaver members contributed to their fund over the past year, and just 20% received employer contributions.<\/p>\n

Presumably, the law changes will result in more young people signing up to a KiwiSaver scheme, but 16- and 17-year-olds will still need the permission of a parent or guardian to join, and for some teens, that may tip it into the too-hard basket.<\/p>\n

Could there be future opportunities to make that enrolment process simpler and more accessible?<\/p>\n

The 2023 New Zealand Census showed that 45.1% of New Zealanders aged between 15 and 19 were in part-time or fulltime work \u2013 up from 33.7% in 2013.<\/p>\n

If we can help these young people to get started on their KiwiSaver journeys as early as possible, we\u2019ll be supporting them to save for the future \u2013 whether that\u2019s for their first home or their retirement.<\/p>\n

My own kids are only 12 and 13, but my wife and I have already helped them to open KiwiSaver accounts, wanting to make it as seamless as possible for them to start making contributions when they are eventually working.<\/p>\n

I\u2019d love to see us all support this generation of teens to make confident choices about saving for the future, so they\u2019re not trying to make up for lost time in 30 years.<\/p>\n

Catch up on the debates that dominated the week by signing up to our Opinion newsletter<\/a> \u2013 a weekly round-up of our best commentary.<\/p>\n","protected":false},"excerpt":{"rendered":"You can see the difference those extra years of contributing can make, not to mention the fact that…\n","protected":false},"author":2,"featured_media":581475,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[39311,206879,45,49,48,21008,222555,40671,133,693,12061,222557,147455,72237,30519,26386,1998,44892,131,132,1705,39206,121955,8726,12953,57676,19481,7479,222554,222556,49391,13139,6336],"class_list":{"0":"post-581474","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-andrew","9":"tag-because","10":"tag-business","11":"tag-ca","12":"tag-canada","13":"tag-changes","14":"tag-didnt","15":"tag-early","16":"tag-finance","17":"tag-for","18":"tag-generation","19":"tag-halfway","20":"tag-journeys","21":"tag-kiwisaver","22":"tag-lives","23":"tag-lost","24":"tag-making","25":"tag-member","26":"tag-personal-finance","27":"tag-personalfinance","28":"tag-retirement","29":"tag-saving","30":"tag-should","31":"tag-start","32":"tag-teens","33":"tag-thats","34":"tag-through","35":"tag-time","36":"tag-twidle","37":"tag-until","38":"tag-were","39":"tag-why","40":"tag-working"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/581474","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=581474"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/581474\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/581475"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=581474"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=581474"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=581474"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}