National to campaign on making KiwiSaver compulsory
Sunday, 21 June 2026
National will campaign on making KiwiSaver compulsory for all workers - including the self-employed.
The party will also introduce KiwiSaver accounts for the newborn with a $1500 kickstart from the Government, introduce Government-paid KiwiSaver contributions for those on paid parental leave, and make KiwiSaver employer contributions compulsory for workers over 65.
The combined changes will cost around $1.1b over four years.
National Party leader Christopher Luxon announced the dramatic policy, a huge shift from the party who opposed the introduction of the savings scheme in the mid-2000s and removed most of the Government’s incentives for joining.
The party has previously promised to lift “default” contribution rates to 6% each for employers and employees by 2032, and has already lifted the default rate to 3.5% in Government. These default rates will now become compulsory.
Workers will be able to get out of KiwiSaver only by meeting the stringent hardship test they currently have to meet to make an early withdrawal from the scheme.
Those in other defined contribution superannuation schemes such as the police pension would also be exempt.
Self-employed workers would be required to contribute the employee amount - 4% - from July 1, 2028.
“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,” Luxon said.
“Right now, the majority of Kiwis in paid work are getting prepared for their financial future, through a regular contribution to KiwiSaver.”
“But for many Kiwis, especially those on low-incomes, the self-employed, and many young people, saving for their future isn’t a priority. I think that’s a mistake.”
“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%.
“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.”
Luxon said he was also keen to make sure children had a good savings start in life.
“To give every child the best start to building financial security, from July 1, 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.”
He said those who chose to work over 65 deserved to have their KiwiSaver contributions matched if they continued to contribute.
“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 July 1, 2027.”
The hardship test is currently available for people who have serious difficulty meeting essential living costs.
About 45,870 people withdrew their KiwiSaver for hardship reasons in the 2024-25 fiscal year.
Nicola Willis said the roughly $1.1b cost of the policy could be met out of future operating allowances.
Asked to reflect on the National Party’s journey to this point, given it has repeatedly opposed compulsory schemes in the past, Willis said she was focused on the future.
“This is a National Party for today and a National Party for the future, and we have always been committed to the values of personal responsibility, of a strong economy, of strong families, and I think the commitment that the prime minister has made today is very reflective of those values.”
Asked if National could claim to be the party of “personal responsibility” while forcing people to save, Luxon said he was comfortable with it.
“Well, we believe very strongly we are the party of personal responsibility. People have a choice about how they invest those funds.“
Other parties react
ACT leader David Seymour - likely needed to form a Government with National - immediately criticised the policy.
“Everyone loves compulsion until you ask where the money comes from. You hope it’s people who would have wasted the money that get forced to save. In reality poor money managers just take on more debt while those trying to pay off the mortgage or grow their small business get their funds diverted and locked up,” he told The Post.
Asked if it was something ACT would stop during coalition negotiations, Seymour demurred.
“There’s a long way to the election, but it’s exactly the kind of feel good, end bad policy ACT exists to hold the line on, whether it’s from National or Labour.”
Labour leader Chris Hipkins said National “couldn’t be trusted on KiwiSaver” - pointing to the multiple cuts to incentives for the scheme National has made in Government.
“They cut KiwiSaver every time they touch it. They cut it again in last year's budget. The National Party's track record on KiwiSaver is abysmal, so their supposed boost, I think that they're calling it a boost, baby boost, or whatever it is that they're talking about, literally just reverses the change that they made when they cut the kickstart payment, which ultimately was one of the sort of signature initiatives when Labour introduced KiwiSaver.”
“We'll set out our own policies on KiwiSaver in due course.”
NZ First leader Winston Peters accused National of stealing his similar policies.
“We thought National was tough on crime - they just blatantly stole NZFirst’s policies of compulsory KiwiSaver, increased contributions, and automatic enrolment at birth with a government top up - which we announced in May and called ‘KiwiSaver Generation’.”