John MacDonald: The pros and cons of National's KiwiSaver plan

Author: John MacDonald,
Publish Date: Mon, 22 Jun 2026, 12:26pm

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There’s one thing I like about the National Party’s KiwiSaver announcement. And there’s one thing I don’t like.
Let’s start with the good bit. Making it compulsory for everyone to have a KiwiSaver account.

It’s amazed me how we say in one breath how critical it is for Kiwis to be saving for their retirement and then, in the second breath, tell people they only have to do it if they want.

Which is like saying to people, what would you prefer? Getting your hands on every last cent of your pay right now? Or would you prefer to have some of it taken away and locked up in a KiwiSaver account?

It’s just like those TV shows where they tell kids they can have one lolly now or two lollies in five minutes. Most of them go for instant gratification.

And that’s how a lot of people are with KiwiSaver. But, if it was compulsory, they wouldn’t have a choice.
Which is why I’m a big fan of this part of what National announced yesterday.

The other bit, though. I’m not keen on. This is where National wants employers to be forced to make KiwiSaver contributions for people working beyond the retirement age.

At the moment it’s voluntary. National wants that to change that. And says, if re-elected, it will make it compulsory for employers to continue making KiwiSaver contributions for staff who work past the age of 65.
I’m not a fan. For several reasons.

For starters, the retirement age is 65. And, until that changes, employers shouldn’t be forced to pay into people’s KiwiSaver if they decide to keep working beyond the retirement age.

Another reason I’m not a fan, is that someone over the age of 65 who is still working is not only getting their wages or salary, but they’re also getting the NZ Super pension from the government.

And, looking at it from the perspective of employers, if National makes it compulsory for everyone to have a KiwiSaver account - as I think it should - that, on its own, will be an extra cost for businesses and organisations.
This from a party that claims to be on the side of businesses.

I also see it backfiring on the people themselves who don’t want to stop working at 65. Because employers will be way less inclined to keep them on if they know they’re going to be forced to keep paying into the KiwiSaver accounts of these older workers.

Which would be a shame. Because no one can argue that people still have a lot to offer beyond the age of 65.
But surely a wage or salary and the NZ Super pension is enough, without forcing employers to throw more money into their KiwiSaver accounts.

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