National Party Promises to Boost KiwiSaver Contributions to 12%

The National Party in New Zealand has committed to enhancing financial security for retirees by gradually increasing KiwiSaver contributions to match Australia’s rate of 12 percent. This announcement was made by National leader and Botany MP Christopher Luxon, who emphasized the importance of retirement savings in ensuring a secure future for New Zealanders.

KiwiSaver, a voluntary savings scheme designed to help individuals save for retirement, currently has default employer and employee contribution rates set at three percent. Under the proposed changes, these rates will rise to four percent by April 1, 2028, with further increases planned to achieve a six percent contribution each from both employers and employees by April 1, 2032. This gradual increase aims to provide Kiwis with greater retirement savings compared to their counterparts in Australia.

Luxon stated, “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.” He noted that the existing KiwiSaver contributions are considerably lower than those in Australia, which leads to smaller retirement balances for New Zealanders.

He highlighted that this disparity poses a significant challenge for New Zealand, particularly as the country increasingly depends on offshore investments to support economic growth, infrastructure developments, and job creation. “If we’re serious about building the future, and I am, it’s time to aim higher,” Luxon added.

If the National Party is elected next year, they will implement a plan to incrementally raise the default contribution rates by 0.5 percent each year, starting in 2029. This will culminate in a combined contribution rate of 12 percent by 2032. For example, a 21-year-old earning $65,000 annually today could potentially retire with a KiwiSaver balance of approximately $1.4 million, which is an increase of around $400,000 compared to projections under the current Budget 2025 settings.

Luxon reinforced the party’s commitment to supporting hardworking New Zealanders, stating, “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.”

As the National Party positions itself for the upcoming elections, their focus on enhancing KiwiSaver contributions signals a broader strategy aimed at improving the financial well-being of future retirees in New Zealand.