Labour will make KiwiSaver work harder for more New Zealanders, helping Kiwis save, build wealth and retire with security.
"Labour is the party of KiwiSaver. We believe every New Zealander should have the opportunity to build a secure future," Labour Leader Chris Hipkins said.
"Sir Michael Cullen turned that belief into KiwiSaver, while National voted against it. Today KiwiSaver funds exceed $138 billion and are an important source of investment in our economy.
"Under National too many New Zealanders are struggling to pay the bills, let alone save for tomorrow. More than a million working-age KiwiSaver members aren’t contributing at all, while 83,400 are on a savings suspension.
“New Zealanders cannot afford another three years of going backwards. Labour will get our economy growing again so working people can build something for their future.
"KiwiSaver is one of Labour’s proudest legacies. We created it, and now we’re going to make it work better for people," Chris Hipkins said.
Labour will:
Make employer contributions compulsory, and lift to 6 percent by 2032, including when employees reduce or pause their own contributions.
Set the employee default at 4 percent, remove the minimum contribution rate, and give employees more flexibility to choose their rate as circumstances change.
Ban new total remuneration contracts that absorb employer KiwiSaver contributions into salaries.
Extend employer contributions to workers over 65.
Keep KiwiSaver growing for parents while they’re on paid parental leave.
Explore more flexible KiwiSaver options for self-employed New Zealanders.
"Labour built KiwiSaver and changed the way New Zealanders save. Now we want it to work harder for more people," Labour finance and economy spokesperson Barbara Edmonds said.
"National has made it harder for Kiwis to save and now wants to force workers to put more in. Labour will require employers to contribute at the same amount as National is proposing but give workers more flexibility when money is tight.
“We’ll also make KiwiSaver fairer for parents, older Kiwis and broaden who benefits – working with self-employed New Zealanders on more flexible ways to build their savings in the scheme.
“From 1 July 2028, employer contributions will become compulsory and will extend to paid parental leave and workers over 65. We’ll phase changes across our KiwiSaver policy carefully, giving workers and businesses certainty.
"Stronger KiwiSaver means more wealth in Kiwi hands and more investment here at home. Labour will back Kiwis to save and back the businesses that will grow our economy," Barbara Edmonds said.
