Sole traders may have drawn the short straw when it comes to recent KiwiSaver changes

The Government's halved its annual contribution to self-employed workers from this month forward.

Hnry's Sole Trader Pulse reveals a quarter of sole traders plan to reduce their own contributions as a result.

Chief executive James Fuller says 41 percent have already reduced their KiwiSaver or other savings funds due to inflation.

He says the challenges are compounding - where on top of a difficult economic situation, sole traders are reducing their retirement savings based on government policy changes.