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- By Christopher Luxon, Prime Minister and MP for Botany
National will back New Zealanders to get ahead, build a bigger nest egg, and retire
with greater financial security to give them a better quality of life.
In the 2025 Budget, we lifted the default contribution rate for both employers and
employees and extended the government’s contribution to 16 and 17-year-olds. And late last year we announced that if re-elected, National will gradually lift KiwiSaver contributions to match the 12 per cent Australians enjoy by 2032.
But we want to go further. That’s why I recently announced that if re-elected, National will introduce ambitious changes to make KiwiSaver compulsory for all New Zealanders, set our kids up for a more secure future, support parents on paid parental leave, andensure older
workers don’t lose out.
Under National’s changes, everyone in work will be required to contribute to KiwiSaver from April 1, 2028. Contribution will be set at the default rate, meaning that by 2032 employers and employees must each contribute 6 per cent.
To give every child the best possible start, 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.
We’re also supporting mums and dads to continue building their KiwiSaver while on paid parental leave. Welcoming a new baby can put financial pressure on many families as they adjust to life on a single income and more expenses, so many parents – most often, mums
– choose not to contribute to KiwiSaver during this time.
That’s understandable, but it means that under the current rules they miss out on the government’s matching contribution. National will address this by providing a government contribution to a parent’s KiwiSaver while they’re on paid parental leave, even if the parent
isn’t contributing themselves.
And to ensure older workers don’t miss out, we will require employers to maintain KiwiSaver contributions for employees over 65 on the same basis as for all other employees.
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.
With National, they will get that backing as part of our wider plan to fix the basics and build the future for all New Zealanders.
