Prime Minister Christopher Luxon says, if re-elected next year, the National Party will increase KiwiSaver default contribution rates to 12% by 2032, matching Australia.
Here's National's announcement.
National to lift KiwiSaver contributions
A National Government elected next year will ensure Kiwis are more financially secure in retirement by gradually increasing KiwiSaver contributions to match Australia’s 12 per cent rate, National Leader Christopher Luxon says.
“Financial security for retired people comes through home ownership and supplementing New Zealand Superannuation with long-term savings. KiwiSaver supports both of those, so National will strengthen it further,” Mr Luxon says.
“In Government, we are already lifting the default rate of KiwiSaver contributions for employers and employees from 3 per cent to 4 per cent by 1 April 2028.
“But even after those changes, KiwiSaver contributions would be much lower than the equivalent scheme in Australia. For Kiwis working in New Zealand, that means smaller KiwiSaver balances and less financial security than friends or family working and saving in Brisbane, Sydney or Melbourne.
“Smaller retirement balances present a challenge for New Zealand as a whole, too, as we rely more on investment from offshore to fund the infrastructure, start-ups, and housing we need to grow our economy, create jobs and lift incomes.
“If we’re serious about building the future, and I am, it’s time to aim higher.”
If elected next year, National will continue to increase default contribution rates by 0.5 per cent from 1 April 2029, rising by 0.5 per cent a year until 1 April 2032, to achieve a 6 per cent contribution each from employers and employees.
That will mean a combined rate of 12 per cent by 2032, matching Australia.
“For a 21-year-old earning $65,000 a year today, these changes would mean they retire with a KiwiSaver balance of around $1.4 million, around $400,000 more than they would have with the Budget 2025 contribution settings,” Mr Luxon says.
“If you’re a New Zealander who does the right thing by working hard and saving for the future, you deserve to get ahead. National backs you every step of the way.”
And here's a KiwiSaver fact sheet released by National.
2 Comments
Feels a bit misleading being that they've combined employer and employer contributions to get the Australian minimum contribution, and that they're campaigning for something that isn't in the next term
So, while a necessary, obvious & long overdue change, employees & employers will ultimately result in an additional 9% wage/salary cost...sounds a bit inflationary?
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