The case for compulsion is weaker than most assume. A low-income, part-time worker, earning less now than they would get on NZ Superannuation, would be made to save in the years they can least afford it. And someone borrowing to build a business might sensibly prefer to invest in that business than in a KiwiSaver share portfolio. Compulsion might even push them to take on more debt simply to make the KiwiSaver payment.

To read the article on the NZ Herald website, click here.