Prime Minister Christopher Luxon has announced that a re-elected National Government would further increase default KiwiSaver contribution rates, forming the party’s first election pledge of the campaign.
Luxon said National intends to gradually lift the default contribution rate for both employers and employees to 6% by 2032, up from the current 3%. “If we’re serious about building the future… it’s time to aim higher,” he told supporters in Lower Hutt. He also noted that Australia’s superannuation system requires employer contributions of 12%, highlighting the gap between the two countries.
How the Increases Would Work
Under the proposal, default contribution rates would rise by 0.5% each year from 1 April 2029 until reaching 6% in 2032.
KiwiSaver would remain voluntary. Employees could continue to opt out or contribute at lower levels, but employers would need to match contributions up to the new default rate. The minimum employee contribution rate would stay at 3%.
Already Announced by the Current Government
1 April 2026: 3.5%
1 April 2028: 4%
Additional Increases Proposed by National (if re-elected)
1 April 2029: 4.5%
1 April 2030: 5%
1 April 2031: 5.5%
1 April 2032: 6%
While participation remains voluntary for employees, employer matching obligations will increase as the default rate rises.