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Most political parties offering dedicated KiwiSaver policies this election have committed to some form of compulsion and increased contributions.
This is a clear acknowledgement of KiwiSaver’s pivotal role in ensuring retirement preparedness. But ongoing reform should balance a range of factors including demographic equity, fiscal sustainability, workability for providers, impacts on existing employment arrangements, and the enduring roles of New Zealand Superannuation (NZ Super) and other workplace savings schemes.
We summarise the reform options on offer in table format and provide some supporting commentary on how to help transform KiwiSaver into a truly fit-for-purpose retirement savings scheme for current and future generations.
As at the date of this article, neither the Green Party nor Te Pāti Māori had released a specific stand-alone KiwiSaver policy.
Chapman Tripp commentary
The prevailing focus on some form of retirement savings compulsion and increased contributions across the political spectrum is highly positive. It is important, however, that ongoing KiwiSaver reform prioritises flexibility over philosophical perfection.
We note for example the June 2026 paper by the New Zealand Society of Actuaries suggesting that fixed 6% + 6% default minimum contribution rates may lead to over-saving over the course of a member’s lifetime, especially for minimum wage earners and those not making a first home withdrawal.
Gradual steps towards a KiwiSaver regime which is more analogous to the employer contributions-centred Australian “super guarantee” would involve:
- a mandatory employer contribution rate which increases over time, and
- if there is a political will, continued (or enhanced) flexibility around employee contribution settings, such as rules allowing employees earning below a specified amount to contribute at a lower rate without any commensurate reduction in employer contributions.
This would meaningfully impact savings behaviour and help turn the tide on the still-high number of employees of working age who are not contributing to KiwiSaver, in many cases for affordability reasons.
Greater incentives (and, where appropriate, compulsion) would further enable KiwiSaver to better supplement NZ Super by encouraging life-long but sustainable savings behaviour. This will require further policy work and, for example, potential incentives in relation to self-employed KiwiSaver members.
Both National and Labour have adopted two key aspects of the Retirement Commission’s recommendations in last November’s Review of Retirement Income Policies 2025, namely (though the details differ):
- enhancing the paid parental leave contributions regime, and
- requiring the continuation of mandatory employer contributions for those aged 65+.
But neither major party has (as yet) signalled any movement in relation to the now largely token Government contribution, which the Retirement Commission has recommended could be more tightly targeted towards lower earners by:
- reducing the annual income cap from $180,000 to $58,000, and
- increasing those contributions back to the more meaningful level of 50c per dollar saved, up to a maximum government contribution of $500 a year.
We support the Retirement Commission’s higher-level proposals for an improved “stewardship model” in the retirement incomes context, including establishing a new cross-party accord to help embed retirement income policy within a stable, rules-based framework that balances political accountability with long-term planning.
In that context we welcome the National and Labour finance spokespersons' recently expressed support, during a televised debate, for collaboratively exploring post-election a broad and holistic review of New Zealand’s retirement system.
Total remuneration
There are strong advocates for policy reform to the effect that KiwiSaver employer contributions should be genuinely additional (i.e. paid on top of salary or wages rather than absorbed into pay packages). Care would be needed though to avoid unwarranted adverse impacts for employers when otherwise banning total remuneration. In our view, any such ban (if adopted) should:
- exclude existing total remuneration arrangements agreed in good faith, until those are replaced or renegotiated, and
- retain the flexibility for:
- employers to agree a total remuneration approach with higher earners (say, those who earn $200,000 or more a year), and
- any required KiwiSaver employer contributions to be a salary sacrifice if the employee already receives greater employer contributions to another retirement scheme on top of pay.
Impacts for existing workplace savings schemes
The pending KiwiSaver contribution rate increases will exacerbate the already significant KiwiSaver integration challenges faced by existing employer-sponsored workplace savings schemes and plans, which mostly pre-date KiwiSaver’s introduction and continue:
- making an important contribution to New Zealand’s long-term retirement savings pool, and
- producing savings outcomes superior to those resulting from the standard KiwiSaver settings, given materially higher employer contribution levels (and in most cases additional benefits such as life cover).
To guard against double subsidies, workplace scheme employer contributions are typically offset against any compulsory KiwiSaver employer contributions payable. These offsets will increase progressively as the default KiwiSaver employer contribution rate increases -impacting the private scheme’s viability and risking unnecessary wind-ups and resulting savings leakage.
If (in rate terms) an employer’s contributions to an existing workplace savings scheme or plan equal or exceed the KiwiSaver default employer contribution rate applying at the time, those contributions should fully offset the employer’s KiwiSaver contribution obligations with respect to all members receiving them, and not merely (as currently, but with minor exceptions) those who joined before 1 April 2008.
If the fundamental purpose of KiwiSaver reforms is ensuring improved retirement preparedness, they should be implemented in a way that gives deserved recognition to those existing schemes and plans, which exemplify employer best practice in terms of retirement savings support.
Next steps
KiwiSaver is widely recognised as a success story, with the KiwiSaver Act recently celebrating its 20th birthday. As at 30 June 2026, KiwiSaver providers held funds under management of over $155 billion on behalf of approximately 3.47 million members. But there are pressure points that will need to be addressed.
There is increasing political consensus that KiwiSaver must assume greater importance in supplementing NZ Super, given the fiscal burden of our ageing population. And there is growing concern that KiwiSaver may not be delivering for all New Zealanders, including lower income earners and the self-employed.
The upcoming General Election stands as a potential watershed moment for KiwiSaver. Regardless of the election result and inevitable coalition negotiations, we urge the new Government to undertake a considered, bipartisan approach to what may be once-in-a-generation reform. This will help ensure that KiwiSaver can deliver long-term financial wellbeing for all New Zealanders.
We also urge a policy development approach which remains open to expert advocacy and inputs and is carefully detail-centric, so as to avoid unintended outcomes impacting administrative workability.
Please contact one of our KiwiSaver experts should you require any help with the impact of whatever changes are ultimately proposed post-election.
