Media release: Guardrails for a Compulsory KiwiSaver
Wellington (Thursday, 25 June 2026) – If re-elected, National would make KiwiSaver contributions compulsory from 2028, with employers and employees each contributing 6 percent by 2032.
That compulsion requires guardrails, according to a research note published today by The New Zealand Initiative's Chief Economist Dr Eric Crampton.
“If the state requires you to save through KiwiSaver, it should protect KiwiSavers’ choices,” said Dr Crampton. “Savings in KiwiSaver accounts should not be seen as a pool of capital for domestic investment unless Kiwis want to make those investment choices.”
A large pool of compelled savings can be tempting for future governments. Mandates requiring that KiwiSaver accounts invest domestically could form part of future governments’ industrial policies. Similarly, mandates and prohibitions on different investment classes could worsen savers’ investment returns.
“There have already been suggestions that larger pools of domestic KiwiSaver capital should be invested in infrastructure projects. The choice must remain with families saving for their retirement,” said Dr Crampton.
The research note suggests a set of guardrails that would protect KiwiSaver accounts if KiwiSaver becomes compulsory. If a future government imposed requirements on KiwiSaver accounts that harmed Kiwis’ retirement savings, it would be required to let Kiwis opt out. Otherwise, it would have to tally the cost and provide compensation.
"The guardrails we suggest are starting points. They can be improved. But if KiwiSaver contributions are compulsory, KiwiSavers’ accounts need stronger protection against government mandates. Future governments should not be able to compel KiwiSaver portfolios to invest in projects that investors have not found attractive,” Dr Crampton concluded.
Guardrails for a Compulsory KiwiSaver is available on the Initiative’s website at www.nzinitiative.org.nz.
ENDS
Dr Eric Crampton is available for comment. To schedule an interview, please contact:
Jamuel Enriquez, Marketing and Communications Manager
E: jamuel.enriquez@nzinitiative.org.nz
P: 021 022 34451
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About The New Zealand Initiative
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