With recent changes to KiwiSaver now in effect as of 1 July 2025, it’s natural to feel uncertain. The halving of the annual Government Contribution has left many asking: Is KiwiSaver still worth it? For members of Christian KiwiSaver Scheme and beyond, it’s an important question – especially for those who want to make wise, values-aligned decisions about their long-term financial wellbeing.

The truth? While the Government Contribution may be smaller now, KiwiSaver remains one of the most effective and empowering tools we have to prepare for retirement.

Let’s unpack some of the myths circulating right now and set the record straight.

1. “KiwiSaver isn’t worth it now that the Government Contribution is halved.”

We hear this one a lot. Yes, the annual Government Contribution has dropped from $521 to $260 from 1 July 2025. But it hasn’t disappeared entirely and $260 is still a meaningful boost, especially when you consider the compounding effect over time.

Using the Sorted calculator, we can calculate how much this can add up to over time.

For a person aged 18 today, only contributing $1,042 per year (i.e. the minimum required to be eligible for the Government Contribution) and the government adding $260 per year, their balance could be around $146,000 by age 65. This assumes the money is invested in a growth type fund.

If we move the age forward to 30, and they only contribute the minimum (no extra contributions from working), the total at age 65 could be around $87,000.

Use the Sorted KiwiSaver calculator, to check your goal at https://sorted.org.nz/tools/kiwisaver-calculator/

It’s not as generous as before, but it still adds up and that matters.

2. “You can’t trust KiwiSaver; the rules keep changing.”

Changes to the system can feel frustrating, especially when they affect your long-term plans. One thing still hasn’t changed: your KiwiSaver account is legally yours.

Your savings are held in trust and invested on your behalf by your scheme provider. While the government can alter settings like contribution thresholds, it cannot take your money. Your balance remains yours and growing for your future.

As with any investment, adaptability is key. While incentives may shift, the core benefits of KiwiSaver, including structured saving and employer contributions, remain constant.

3. “I might as well save in a bank account instead.”

It’s tempting to think that if government support is reduced, you’d be better off saving elsewhere. But the benefits outweigh the changes that were made.

Why? You will still receive the employer contributions, if you are working and contributing too. If you are aged 16 or 17, this will also apply to you from April 2026.

Unlike a bank account, KiwiSaver investments also benefit from long-term market growth. Over time, even small contributions add up, as the markets rise over the long term, which turns even modest regular contributions into a significant nest egg.

4. “I’m self-employed, so KiwiSaver isn’t worth it for me.”

If you’re self-employed, you don’t receive employer contributions, but that doesn’t mean KiwiSaver isn’t worthwhile.

By contributing just over $20 a week (around $1,042 per year), you still qualify for the $260 Government Contribution (until the income threshold applies). And if you can contribute more, even better. You’ll benefit from the same compounding investment growth as any other member, and the discipline of regular saving.

For many self-employed people, KiwiSaver is their only structured retirement savings plan. It’s a way to put something aside for the future, consistently and purposefully.

5. “The government should provide for my retirement.”

This is one of the biggest myths of all. While New Zealand Superannuation will likely continue in some form, it’s not designed to fund a comfortable retirement on its own.

Relying solely on government support puts your future lifestyle at risk. KiwiSaver helps bridge the gap through intentional investment. It’s a way of stewarding the resources entrusted to you today so they can provide for you tomorrow.

And that’s what Christian KiwiSaver Scheme is all about: empowering members to align their faith and finances through investment choices that reflect Christian values.

We believe in the power of personal responsibility. When you contribute to your KiwiSaver account, you’re not just saving money – you’re expressing faith in the future and taking ownership of your financial wellbeing.

Still not sure? We’re here to help.

Whether you’re adjusting your contributions or checking your fund type our team is here to help.

Christian KiwiSaver Scheme is managed and issued by The New Zealand Anglican Church Pension Board (trading as Anglican Financial Care). The Product Disclosure Statement can be found here Documents | Christian KiwiSaver Scheme.