Christian Kiwisaver provider backs most Budget changes to scheme

Anglican Financial Care, which manages the Christian KiwiSaver Scheme, supports the planned increase in the contribution rate from 3 per cent to 3.5 per cent initially, and to 4 per cent by 2028.

“Even a small increase in regular savings can make a meaningful difference over time, especially when invested wisely,” said Anglican Financial Care in commentary on the Budget. “This is about fostering financial resilience.

“At the same time, we know many families are feeling the pressure of rising living costs. For those doing it tough, it’s important to know that while the contribution rate is increasing, individuals are still able to choose to stay at the 3 per cent contribution level.”

Contributions can be suspended for 12 months if necessary, it was noted.

Anglican Financial Care is “especially encouraged by the decision to extend the KiwiSaver contribution rules to working 16- and 17 year-olds. Getting young people to start saving early will bear fruit across their lifetime, building a stronger foundation for their future. But again, for those struggling with their day-to-day needs, the same flexibility described above applies to these young workers.”

The Government’s KiwiSaver contribution will drop from a maximum of about $520 per year to $260; that will only be available to those earning less than $180,000. Up to a level of $1042 put in by savers in a year, the Government will contribute 25 cents for each dollar saved, down from the 50 cents per dollar contribution level this year.

“While we are sorry to see the Government contribution being reduced, it was always, frankly, a ‘gift’,” Anglican Financial Care stated. “The heart of KiwiSaver remains in each person’s ongoing effort to save, supported by employers and by the long-term investment strategies of scheme managers.”

FULL STORY

Budget 2025 and Kiwisaver commentary from Christian Kiwisaver Scheme (Christian Kiwisaver Scheme)