National to make KiwiSaver compulsory, if elected

The National Party's new KiwiSaver policy has been slammed as stealing by a coalition partner while another is calling for more scrutiny.

The party announced plans to make KiwiSaver compulsory for all workers, automatically enrol babies and contribute $1500 as a Baby Boost payment if re-elected.

It was part of a suite of changes that would cost more than $1 billion over four years.

The party would also automatically enrol babies, pay a government contribution to those on parental leave and make employer contributions for those over the age of 65 compulsory.

New Zealand First leader Winston Peters said the policy was 'copying' his party's own Kiwisaver policy.

ACT Party leader David Seymour was onboard with the idea called for more scrutiny of the plans to lift the default KiwiSaver contributions.

'Build a bigger nest egg'

National leader Christopher Luxon said the party is backing New Zealanders to "build a bigger nest egg" and retire with "greater financial security".

He made the announcement at the party's annual conference in Lower Hutt on Sunday.

Luxon pointed to government policy announced in Budget 2025 that would gradually lift KiwiSaver contribution rates, but said National was "going further".

He said everyone in work would be required to contribute to KiwiSaver, or an equivalent scheme, from 1 July 2028.

The contribution amount would be set at the default rate, meaning by 2032 employers and employees must contribute 6 percent each. Workers in an alternative scheme, such as the Police Super Scheme, would be exempt.

"In a more uncertain world, New Zealand needs higher savings and greater financial resilience. Compulsory KiwiSaver will help deliver both," Luxon said.

If elected, the party would also automatically enrol every baby born in New Zealand into KiwiSaver and contribute a $1500 payment to "kickstart their savings," Luxon said.

"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."

As well, National would provide a government contribution to parents on paid parental leave, even if they were not contributing themselves.

Luxon pointed to new parents, "overwhelmingly mums", who miss out on the government's matching KiwiSaver contribution while on parental leave.

That too would be made at the default rate, applied against the amount of paid parental leave a person was receiving. This would start from 1 July 2027.

Luxon said many New Zealanders choose to keep working after 65, and at the moment employers were not required to make contributions after that age. National would also look to make employers maintain those contributions for employees over 65.

"New Zealanders who do the right thing by working hard, saving up and investing deserve a Government that backs them - not to be punished with more taxes that hit their investments and make them worse off."

The policy document released as part of the announcement listed the fiscal costs.

In the 2027/2028 year the changes would cost $110 million. The following year would cost $323m, then $342m, then $361m in the 2030/2031 year.

Overall, that is more than $1 billion over four years.

The party said it presented the most "conservative estimate" of the net cost of the policy, acknowledging there may be additional revenue from higher employer superannuation contribution tax, but had chosen not to offset the costs with that extra money.

'They're just copying us'

New Zealand First leader Winston Peters said National was stealing his own party's policy.

"Imitation is the most sincere form of flattery. It is New Zealand First's policy, both with respect to the start up. We say $1000 per child birth, they're saying $1500," Peters said.

He claimed that the National Party was initially considering a $300 boost, but had gone "too high" in a bid to make its policy look better.

"They're just copying us."

ACT Party leader David Seymour was onboard with the idea of making it easier to save while having children, but he wanted more scrutiny of the plans to lift the default KiwiSaver contributions to a combined 12 percent.

"I'm sure will be popular the first time people hear it until people ask, where does the money come from?

"That's 12 percent of your income that you can't use to pay down your mortgage, you can't use to invest in your small business. But you may find you are borrowing from the banks.

Seymour said anybody could already contribute 12 percent but they mostly chose not to.

After his speech, Luxon was asked by media if National was still the party of personal responsibility.

"We believe very strongly we are the party of personal responsibility. People have a choice about how they invest those funds," he said.

"Most importantly they're going to have more choices about how they get to live their life because they'll be fundamentally wealthier as a result of this."

The Prime Minister denied that they made these changes around Kiwisaver in order to raise the retirement age.

"We see them as two separate conversations. You know that we've had a long standing position about gradually lifting retirement ages - we're giving people lots of time and certainty to adjust to that - but this is actually more about a much long term ambition ... we want [Kiwis to] build serious savings and investment."

Finance Minister Nicola Willis said the cost of the policy - more than a billion dollars over four years - would come from the government's operating allowances.

"We've got a track record in government of delivering our priorities in tight operating allowances. We've achieved that through being very careful for every dollar that we spend. We believe that this is a very high-value investment in every New Zealanders' future."

Labour Party leader Chris Hipkins said National could not be trusted with KiwiSaver, but he supported increased contributions and participation

"But the National Party don't have a leg to stand on here. Every time they've touched KiwiSaver, they've cut another part of it," he said.

"The most recent cuts they've made to KiwiSaver were only a year ago. Now they're trying to portray themselves as champions of KiwiSaver."

He was left with unanswered questions including how the National Party would pay for it.

"How are they going to support those on low incomes who aren't currently in KiwiSaver become part of KiwiSaver?

"Because if they simply make it compulsory without any additional support, that's a real terms pay cut for a lot of low-income New Zealanders at a time when they're already struggling with a cost of living crisis."

The Labour Party planned to set out its own KiwiSaver policy ahead of election, Hipkins said.