The proposal includes lifting combined default KiwiSaver contribution rates to 12% by 2032, making KiwiSaver or an equivalent scheme compulsory for workers, automatic enrolment at birth with a $1,500 Baby Boost payment, KiwiSaver support during paid parental leave and employer contributions for workers aged over 65.
FSC Chief Executive Kirk Hope says the package is a strong signal that KiwiSaver will play an increasingly important role in New Zealand’s future.
"KiwiSaver is one of the most practical tools New Zealanders have to build long-term financial resilience," Hope says.
"These proposals recognise that saving needs to start earlier, reach more people and continue through the life stages where people can otherwise fall behind."
Mr Hope says the FSC particularly welcomes the focus on contribution rates, wider participation and supporting parents and older workers.
"Moving toward a combined 12% contribution rate by 2032 is a significant step to help more people build meaningful retirement savings over time. Automatic enrolment at birth, backed by the $1,500 contribution, is also a smart way to start the savings habit early and make compounding work harder for the next generation.
"The parental leave change matters too. Parents should not be penalised in their retirement savings because they take time out of paid work to raise children.
"Extending employer contributions to workers over 65 is also fair. More New Zealanders are working longer, and the system should recognise that."
Mr Hope says any major KiwiSaver reform needs careful implementation, but the direction is right.
"KiwiSaver has been one of New Zealand’s best public policy ideas and the job now is to make it fit for the next generation. This latest policy should set a high bar for other parties. FSC is ready to work with any party serious about helping New Zealanders save more and be more financially resilient."
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