Govt Cuts KiwiSaver, Hnry Steps In With $130,000 Injection

• Hnry is topping up KiwiSaver accounts for 500 randomly selected customers with a one-off $260.72 contribution, directly responding to the government’s decision to halve the annual KiwiSaver top-up for the self-employed in Budget 2025.
• New survey data reveals that 52 per cent of sole traders oppose the government’s policy, only 19 per cent support it, and 24 per cent plan to reduce their KiwiSaver contributions as a result.
• James Fuller, Hnry CEO and co-founder, warns the decision will lead to more people relying on state-funded support and is calling for the top-up to be reinstated for sole traders and broader reform to support sole trader retirement savings.

Hnry is topping up the KiwiSaver accounts of 500 sole traders, stepping in after the government halved its annual contribution to self-employed workers from 1 July.

The randomly selected Hnry customers will each receive a one-off KiwiSaver contribution of $260.72, matching the amount removed in Budget 2025 and injecting more than $130,000 directly into customers’ retirement savings, which could boost the group’s collective funds by one million dollars by the time they retire.

Hnry - one of New Zealand’s largest accountancy firms - says the move responds to growing concern among sole traders about the impact of the government’s decision. New findings from the latest Sole Trader Pulse survey, the country’s only independent survey of sole traders, reveal:

• Fifty-two per cent oppose the cut
• Just 19 per cent support it
• Almost a quarter say they will reduce KiwiSaver contributions because of it
• 41 per cent have paused Kiwisaver or saving contributions due to inflationary pressures

Unlike employees, sole traders don’t receive employer contributions. Their only incentive to save for retirement comes from the government’s annual top-up, now halved, which applies if they save at least $1,042.86 a year. Sorted.org.nz’s modelling suggests that this could reduce their overall retirement savings by up to 17 per cent.

Hnry co-founder and CEO James Fuller says the country’s 400,000 sole traders are hardest hit, but there’s been no recognition of the impact from the government.

“We don’t employ these people, but we do see every day how hard they work and how little support they get. This cut makes it even more difficult for them to establish long-term financial security. It shouldn’t fall to private businesses to fill the gap, and while we’d love to help every customer, we’re in a position to help some, so we are,” he says.

The 500 randomly selected Hnry customers are being notified today of the one-off contribution being paid directly into their KiwiSaver account. Fuller says the government continues to underestimate the scale and contribution of the self-employed workforce, and, as a starting point, is calling on it to reverse the Budget 2025 decision and reinstate the full $521.43 top-up for sole traders.

“We’re talking about nearly 20 percent of the workforce; builders, electricians, physios, nurses, and creatives. People we rely on every day, but who are constantly overlooked by a government that favours policies that benefit big business.

“This isn’t a fringe issue; the ripple effect is irrevocable; it will create headaches for future governments when it comes to dealing with more retirees relying on state-funded support because they have less in their retirement savings.

“There are also additional levers that could be pulled to encourage people to save for their retirement - contributions in Australia are tax-deductible, which incentivises people to save. We need to be doing more, not less; yet we’re stuck with shortsighted decisions that unfairly penalise a workforce that contributes billions to our country’s GDP every year,” he says.

Hnry is finalising a joint report with the Retirement Commission, set for release next month, exploring ways the government can better support sole traders’ retirement savings.

The latest Sole Trader Pulse was conducted between 2 and 13 June 2025, with a margin of error of ±4.4%.

FAQ

How were customers selected?

Hnry randomly selected 500 customers from its database, who will be notified today.

How much money will each customer receive?

Each selected customer will receive a total of $260.72, paid directly into their KiwiSaver account. Hnry will make payments in two instalments: one in July and one in August 2025.

Will this be an annual contribution?

No. This is a one-off contribution made in response to the government’s decision, announced in Budget 2025, to halve the annual KiwiSaver contribution for sole traders.

Why has Hnry decided to make this contribution?

Modelling from Sorted.org.nz shows that cutting the government contribution will leave the self-employed 17 per cent worse off at retirement than those in traditional employment. Hnry is in a position to provide a one-off contribution and wants to support its customers where it can.

Is Hnry responsible for KiwiSaver contributions - and should the private sector be doing more?

No. Hnry supports and advocates for New Zealand’s sole trader workforce, but it does not employ them and therefore does not make employer KiwiSaver contributions. Employees already receive employer contributions to their retirement savings - the issue here is that sole traders’ only incentive, the government contribution, has been halved. By making this one-off payment, Hnry aims to offset the $260.72 loss these 500 sole traders will face in the 2025/26 year, and to draw attention to a broader issue: if the needs of the country’s 400,000 sole traders continue to be overlooked, the government risks creating a generation of Kiwis who may require greater support in retirement.

About Hnry:

Founded in 2017, Hnry is one of New Zealand’s largest accountancy firms. It provides a pay-as-you-go, all-in-one digital accounting service that handles invoicing, expenses, payments, taxes, filings, and offers expert on-demand support. Hnry takes care of all the financial admin for contractors, freelancers, sole traders, and the self-employed, allowing them to focus on getting the job done rather than worrying about tax and compliance. Hnry recently won the ‘Innovation in Financial Services’ category at the 2024 INFINZ Awards. In 2023 and 2024, as well as being one of the leading companies in the Deloitte Fast 50, it was also recognised as the Fastest Growing Technology Business in the Wellington and Lower North Island region.

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