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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 and Botany MP 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.
“In Government, we are already lifting the default rate of KiwiSaver contributions for employers and employees from three per cent to four per cent by April 1, 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.”
Luxon says smaller retirement balances present a challenge for New Zealand as a whole as the country relies more on investment from offshore to fund the infrastructure, start-ups, and housing it needs to grow the 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 April 1, 2029, rising by 0.5 per cent a year until April 1, 2032, to achieve a six 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,” 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.”
