A re-elected National Government would make KiwiSaver compulsory for all workers from 1 July 2028, as part of a wider package aimed at lifting New Zealanders’ retirement savings.

National Leader Christopher Luxon said the change would help people build a bigger nest egg and retire with greater financial security.

“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 and more choices in their retirement,” he said.

Under the policy, everyone in work would be required to contribute to KiwiSaver, or an equivalent retirement savings scheme, from 1 July 2028. Contributions would be set at the default rate, meaning that by 2032 employers and employees would each contribute 6 per cent.

The move builds on National’s existing commitment to gradually lift KiwiSaver contribution rates to 6 per cent each for employers and employees, a combined 12 per cent intended to match Australia by 2032.

Luxon said recent global volatility had underlined the need to strengthen the country’s financial position.

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

People would be able to suspend contributions only if they met the existing hardship test currently used when applying to make an early withdrawal from KiwiSaver.

National would also automatically enrol every baby born in New Zealand into KiwiSaver from 1 July 2027, with a $1500 Baby Boost payment to start their savings. Luxon said parents would be able to contribute further if they wished.

“Even if they can’t, their kids will be well on their way to a bigger nest egg,” he said.

The party would extend Government contributions to parents on paid parental leave, including those who were not contributing themselves. Luxon said new parents, overwhelmingly mothers, currently missed out on the Government’s matching contribution when they paused their own payments.

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

National would also require employers to maintain KiwiSaver contributions for employees aged over 65 from 1 July 2027. Employers are not currently required to contribute for staff who keep working beyond that age.

“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,” Luxon said.

Workers in alternative retirement savings schemes, such as the Police Super Scheme, would be exempt from compulsory KiwiSaver contributions.