Kiwis endorse KiwiSaver changes, FSC calls for National Strategy

New polling released today by the Financial Services Council (FSC) reveals strong public support for the recent changes to KiwiSaver during Budget 2025, reinforcing the need for a long-term, government-led strategy to guide its future.

The results show that:

• 62 per cent support extending contribution eligibility to 16-year-olds,
• 59 per cent support increasing the default contribution rate to 4 per cent,
• 47 per cent support restricting government contributions to those earning under $180,000,
• However, 66 per cent oppose halving the government contribution.

FSC Chief Executive Kirk Hope says the results show New Zealanders are engaged and ready for a more ambitious vision for KiwiSaver.

“KiwiSaver is a success story, with 3.4 million enrolments, over $100 billion in funds and widespread public engagement, it’s time to build on that success. The Government has a real opportunity to launch a national strategy that secures better retirement outcomes and unlocks billions in capital for investment back into New Zealand,” says Mr. Hope.

The polling also explored public views on early withdrawal exceptions. The strongest support was for first home purchases 84 per cent and significant financial hardship 80 per cent.

While other early withdrawal proposals were overwhelmingly rejected by New Zealanders.

These included:

• purchasing shares - 75 per cent oppose,
• a farm purchase - 45 per cent oppose, which is already possible under current settings,
• a second home - 73 per cent oppose,
• buying a business - 51 per cent oppose,
• buying farm livestock - 60 per cent oppose,
• buying business assets - 66 per cent oppose,
• or for a holiday - 83 per cent oppose.

“This lack of broad support for any changes to early withdrawal settings show that New Zealanders value KiwiSaver as a retirement savings tool and want it protected and improved. A long-term strategy would be the appropriate avenue to raise ideas and policy changes to improve KiwiSaver. This would ensure KiwiSaver continues to serve its purpose while enabling investment into infrastructure, housing, and innovation - benefiting both savers and the economy,” Mr. Hope adds.

“Australia took a long-term approach in the 1990s and now has over $4 trillion in superannuation funds. With the right strategy, KiwiSaver can follow a similar path and grow a resilient system that supports retirement security and national development, whilst also taking the fiscal pressure off the Government’s finances,” says Mr. Hope.

The FSC is calling on the Government to work with the financial services sector to develop a national KiwiSaver strategy, drawing on industry expertise and international best practice.

ENDS

Note to editors:

The FSC commissioned this polling through Curia Market Research. Polling was undertaken during the period of Sunday 03 August to Tuesday 05 August 2025. The median response was collected on Monday 04 August 2025. 1,000 respondents agreed to participate, 800 by phone and 200 by online panel. Full polling is available on request.