National’s leadership is avoiding saying if the party will target a lift in the age for national superannuation to go with its policy making KiwiSaver compulsory and forcing employers to keep making contributions for workers over 65.
The governing party unveiled its KiwiSaver policy at its annual conference in Wellington.
It would also see employer and employee contribution rates rise to 6 percent each from the current 3.5 percent by 2032, and provide all newborns with a taxpayer paid KiwiSaver start of $1500.
Both leader Christopher Luxon and deputy Nicola Willis quickly redirected journalists’ questions on their intentions over the superannuation age when they presented their KiwiSaver change.
“That’s not today’s announcement,” Willis told a press standup when asked about raising the superannuation age, “but yes, we’ll have more to say about that in the future.”
Luxon added: “We see them as two separate conversations.” The first was on lifting long-term saving through KiwiSaver. “We’ll come back and talk about age … before the election.”
One investment expert, Rupert Carlyon, managing director of Kōura Wealth, told Newsroom the advent of compulsory KiwiSaver would put a new focus on NZ Super.
He saw it as a good set of KiwiSaver changes, seeing them as “a very clear statement that retirement is now our own personal problem.”
But, “the most glaring hole of all though is what does this mean for NZ Super. Compulsion surely means the end of universal NZ Super. You don’t need them both.”
National has campaigned at the past three elections for a lift in the superannuation age from 65 to 67, with the 2023 manifesto aiming to start the change progressively from 2037.
But its coalition with New Zealand First, which flat-out rejects a lift in the age, and Labour’s opposition, means the policy has been sidelined.
National opposed KiwiSaver when it was enacted in 2006 by the Clark-Cullen Labour government.
National’s move now to make KiwiSaver savings compulsory, extending it to the 10 percent of the workforce who so far have opted not to participate,goes against its historical opposition to directing people over what to do with their money.
Luxon argued its endorsement of compulsion going into this election did not lessen National’s advocacy for personal responsibility.
“We believe we’re the party of personal responsibility. People are going to have choice about how to invest their money. They are going to have more choice about how they’ll live their life.”
He described the mandatory nature of contributions as “making it universal” and important for those individuals yet to join.
Asked why National believed the public might now be open to lifting the superannuation age, Luxon repeated “We’re not talking about that today. We’re really here to focus on the long-term investment for Kiwis, that’s why lifting contribution rates is the change we are making today.
“With respect to how you might move universal superannuation from 65 to 67 like many other countries have, we’ll have more to say about that before the election.”
While any change to the superannuation age could be a problem for government formation with NZ First, the move to move to compulsory KiwiSaver enrolment at birth matches the smaller party’s existing policy.
The NZ First leader Winston Peters claimed National’s $1500 payment into KiwiSaver accounts for all newborns was a direct copy of his party’s proposal announced in May for a $1000 payment.
It was a past National administration that lowered and then in 2025 removed the original $1000 payment to KiwiSaver for all who joined, brought in with the scheme in 2007.
Luxon and Willis laughed off the accusation of copying NZ First, but the deputy leader didn’t let it go.
She moved into the microphones at the National event on Sunday to offer what she said was factual context. “I do not recall New Zealand First having a position on universal KiwiSaver, a position on topping-up parents during paid parental leave or a position on continuing to make contributions for older workers.”
KiwiSaver accounts still qualify for a government payment of up to $260 a year if the saver earns under $150,000 a year. No change was being made to that subsidy, which she saw as “another piece of juice” to incentivising saving.
The cost to the taxpayer of the four National initiatives would be $1.1 billion over four years and Willis said the party saw that coming out of standard Budget annual operating allowances – vying with whatever else needed new funding in those years.
The cost to the Government alone, as employer of public servants, would be $280m in the three years from 2028.
She said there could be sums in the tens of millions a year in extra revenue to the Crown from tax on contributions but National had chosen not to include any upside, to be conservativein its budgeting.
Raising the contribution rate to a combined 12 percent (six from employers and six from employees) would take place over four years from 2028-32.
The imposition of compulsory saving would be from July 1, 2028. There would be a lower employee contribution rate of 4 percent required by the self-employed, not the combined 8 applying at that time.
The automatic enrolment and $1500 baby boost payment would start on July 1, 2027, alongside the parental leave support, where government would make an employer contribution.
Making employers continue to contribute to workers’ KiwiSaver when they kept working beyond 65 would also start next July.
Luxon summed up the initiatives: “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.”
He said children born today would not hit retirement until about 2090 and the enrolment payment now could help set them up, regardless of their futures.
Willis said children would be auto-enrolled in KiwiSaver at birth, via birth registrations, and if parents didn’t choose a KiwiSaver fund there would be a default provider. But under 18’s boost payments would be in high growth KiwiSaver funds.
Kōura’s Rupert Carlyon said the increased contribution rates to 6 + 6 “brings us more into line with international norms and acknowledges the reality of what is required rather than the inadequate 4+4 [the rate National previously announced from 2027].
“I do think this needs to be combined with the removal of total remuneration policies otherwise people will see their incomes fall by 6 percent over the next few years as this is implemented.”
That refers to the practice of some businesses incorporating the employer contributions into employees’ total salaries, not paying into KiwiSaver over and above that amount.
Carlyon was not convinced over the compulsory element. “I fear people will start to see KiwiSaver as a tax rather than something they want to do. Every other country in the world has used tax benefits to encourage participation in pension schemes.”
The Financial Services Council chief executive Kirk Hope welcomed the package as a “strong signal that KiwiSaver will play an increasingly important role in New Zealand’s future.
“These proposals recognise that saving needs to start earlier, reach more people and continue through the life stages where people can otherwise fall behind.”
Hope said the parental leave change mattered. “Parents should not be penalised in their retirement savings because they take time out of paid work to raise children.
“Extending employer contributions to workers over 65 is also fair because more New Zealanders are working longer and the system should recognise that.”
