A re-elected National Government will strengthen New Zealanders’ financial security by making KiwiSaver compulsory for all workers from 1 July 2028, alongside other ambitious changes, National Leader Christopher Luxon says.
“National will back New Zealanders to get ahead, build a bigger nest egg, and retire with greater financial security to give them a better quality of life and more choices in their retirement.
“We’ve already committed to gradually lifting KiwiSaver contribution rates to 6 per cent each for employers and employees, totalling 12 per cent to match Australia by 2032.
“Now we’re going further. National will make KiwiSaver compulsory for all workers, set our kids up for a more secure future, support mums or dads on paid parental leave, and ensure older workers don’t lose out.
“Under National’s changes, everyone in work will be required to contribute to KiwiSaver, or an equivalent retirement savings scheme, from 1 July 2028. Contribution will be set at the default rate, meaning that by 2032 employers and employees must each contribute 6 per cent.
“Recent global volatility has underlined the need to strengthen our financial security. In a more uncertain world, New Zealand needs higher savings and greater financial resilience. Compulsory KiwiSaver will help deliver both.
“People will be able to suspend contributions only if they meet the existing hardship test currently used when people apply to make an early withdrawal from their KiwiSaver.
“To give every child the best start to building financial security, from 1 July 2027 National will automatically enrol every baby born in New Zealand into KiwiSaver at birth and contribute a $1500 Baby Boost payment to kick-start their savings.
“Parents will be able to contribute further if they wish but even if they can’t, their kids will be well on their way to a bigger nest egg.
“We’re also supporting mums and dads to continue building their KiwiSaver while on paid parental leave. We know that welcoming a new baby can put financial pressure on many families as they adjust to life on a single income and more expenses, so many parents choose not to contribute to KiwiSaver during this time.
“These parents – overwhelmingly mums – therefore miss out on the Government’s matching contribution. National will address this by providing a Government contribution to a parent’s KiwiSaver while they’re on paid parental leave, even if the parent isn’t contributing themselves.”
This contribution will be made at the default rate, applied against the amount of paid parental leave a person is receiving, starting from 1 July 2027.
“A re-elected National Government will ensure that savers at the other end of their working lives don’t lose out either. Many Kiwis choose to keep working beyond 65 and employers are not currently required to make KiwiSaver contributions for employees after that age.
“National will therefore require employers to maintain KiwiSaver contributions for employees over 65 from 1 July 2027.
“New Zealanders who do the right thing by working hard, saving up and investing deserve a Government that backs them – not to be punished with more taxes that hit their investments and make them worse off.
“With National, they will get that backing as part of our wider plan to fix the basics and build the future for all New Zealanders.”
