National Party finance spokesperson Nicola Willis has clarified the party’s stance on retirement funding, rejecting concerns that shifting focus from New Zealand Superannuation (NZ Super) to KiwiSaver would increase inequality. The National Party plans to campaign on making KiwiSaver compulsory and raising both employee and employer contributions to 6% of pre-tax income by 2032.

Willis acknowledged the need to review NZ Super settings, noting that without adjustment, the government would face increasing pressure to raise taxes. However, she emphasized that National does not intend to cut NZ Super benefits. “Universal superannuation is here to stay,” she said, underscoring its importance as a fundamental support for New Zealanders. She described the KiwiSaver reforms as complementary, aimed at encouraging additional retirement savings for workers and future generations.

The proposed changes include measures to reduce inequities within the retirement savings system. These involve preventing lower-income workers from opting out of KiwiSaver, introducing a $1,500 "Baby Boost" payment to initiate accounts, and ensuring government contributions continue during parental leave. Willis highlighted addressing the “motherhood penalty,” where mothers often accumulate fewer retirement savings due to breaks in contributions.

The plan to increase KiwiSaver contributions and make participation mandatory has prompted debate. The Treasury has previously estimated that adjusting NZ Super payments to track inflation rather than wage growth could reduce lifetime retirement income for low earners by approximately 5%, raising questions about the long-term impact on pensioners.

Labour leader Chris Hipkins criticized National’s approach, saying the party has not clearly articulated its position on NZ Super. He challenged the assumption that compulsory KiwiSaver contributions would be affordable for low-income individuals, warning that higher mandatory payments could increase financial strain among vulnerable workers. “Making KiwiSaver compulsory doesn’t make it more affordable for those low-income New Zealanders. If anything, it puts them into more immediate financial hardships,” Hipkins said.

While National is advocating for increased KiwiSaver contributions as a way to bolster retirement savings alongside NZ Super, Labour remains cautious about the potential impact on those with limited incomes, emphasizing the need for clarity on how these changes will affect all New Zealanders.