ACT wary of National’s push to increase KiwiSaver to 6%

Monday, 24 November 2025

ACT leader David Seymour was wary of KiwiSaver changes.

ACT leader David Seymour says the money his coalition partner is keen to see go into KiwiSaver could end up coming from lower wages, lower business investment or slower mortgage repayments.

Prime Minister Christopher Luxon announced the first National Party election policy on Sunday - a push to increase KiwiSaver default contributions to 6% by 2032, up from 3% currently.

Employers would have to match this higher rate meaning up to 12% of an employee’s salary would go into the savings scheme.

National has kicked off its election campaign with a party promise to pull Kiwisaver contribution rates up to Australia levels.

It follows a coalition Government move at the last budget to raise the default rate to 4% next year, while halving the Government tax credit.

Luxon told Newstalk ZB on Monday morning that the policy would be a bottom line in any coalition talks after the next election, because it “had” to happen.

Seymour said the further push to 6% came from an understandable desire to boost retirement savings, but the money “has to come from somewhere”.

“There’s no free lunch here. There’s just a transfer from one cause to another,” Seymour said.

“Before you did something like this, you’d want to have a really clear idea - where will this money come from? Will it mean lower wages? Will it mean people have to less pay down other debt, or put into working capital for their small businesses?”

Luxon said the change was a “bottom line” for National.

He said an employer might even decide to lower take-home pay to make up for the increasing amount they would have to pay into KiwiSaver, and it would have an impact on what the state could offer employees in collective bargaining rounds.

Winston Peters backs a compulsory KiwiSaver.

Seymour also suggested that for many younger earners putting extra income towards more quickly paying down debt would be smarter than putting it away for a retirement nest egg.

On current polling National would need ACT to form any Government.

National’s other coalition partner NZ First are also eager to increase KiwiSaver contributions - and to make it compulsory for all earners.

Labour’s Chris Hipkins was reticent about fully endorsing the policy, saying a plan would be needed to make sure people on low wages could afford the change.

'Increasing KiwiSaver contributions is a good thing, but without a plan to support people in the process of increasing KiwiSaver contributions, a lot of Kiwis are going to be hit really hard by it,' he said.

Seymour suggested that his agreement to put the rate up to 4% at the last budget was conditional on the reduction in the amount the Government topped up each earner’s savings each year - from $521 to $261.

“It’s fair to say that we were prepared to accept the change that yes, increased the call on employers and workers, but also reduced the amount of debt they faced because they the Government is no longer borrowing so much to in people’s KiwiSaver.”