Compulsory KiwiSaver comes after receiving 'consistent message' from public
The National Party has vowed to make KiwiSaver compulsory for employees if re-elected in November, walking back on its initial plan to not make the scheme mandatory after hearing a "consistent message" from the public.
New Zealand Prime Minister Christopher Luxon announced the electoral promise during the National Party Annual Conference held this week.
"We will make sure every New Zealander is saving for the future, by making KiwiSaver compulsory for working New Zealanders," Luxon said in his speech.
KiwiSaver is a voluntary, work-based savings and investment scheme in New Zealand designed to help citizens save for their retirement.
In November 2025, the National Party promised to gradually lift employer and employee contributions to six per cent each, totalling 12%, by 2032. At the time, it said it would not make KiwiSaver contributions mandatory.
But Luxon said the party has heard a "consistent message" from New Zealanders since the announcement that they can take their proposed changes even further to the point of "a policy of compulsory savings."
"With so many Kiwis already contributing, I just think that's the right call," the prime minister said.
"We know times are tight, and so the usual protections for genuine hardship will remain in place, as well as an exception for those on paid parental leave, and smaller contributions for the self-employed.
"But the principle is simple: if we want a generation of New Zealanders to retire with real wealth behind them, the habit of saving must start early."
Higher KiwiSaver contribution rates
The proposed change comes after the recent increase in contribution rates to 3.5% on April 1, with another 0.5% increase to take effect in April 2028.
The increased contributions are not mandatory, and Finance Minister Nicola Willis said only 9,300 people have opted out of the higher contributions.
Overall, 99.5% of 1.8 million working people contributing to KiwiSaver through their wages or salaries have agreed to the new contribution rates.
"It says a lot about Kiwis' priorities that even while financial conditions are tough for many, the vast majority are choosing to take the opportunity to save for a better financial future," Willis said.
"Small differences in weekly contributions make a big difference over the life of a superannuation scheme."
