National has launched a KiwiSaver calculator so that New Zealanders can see how much bigger their nest egg could be with National's changes to the scheme.
"A re-elected National Government would make KiwiSaver compulsory for all workers from 1 July 2028 and gradually lift combined default contribution rates to 12 per cent by 2032," National's Finance spokesperson Nicola Willis says.
"The calculator allows people to see how much bigger their nest egg could be by the time they retire compared with sticking with the status quo.
"For a 30-year-old in the workforce today, on an annual salary of $72,000 in a KiwiSaver growth fund with a current balance of $20,000, they could retire with $1.22 million under National's plan compared to $964,000 under current law.
"National's plan to strengthen KiwiSaver also includes automatic enrolment for babies at birth, alongside a $1500 Baby Boost payment to kickstart their savings.
"People planning a family in the next couple of years can use the calculator to see how much their future children could have in their KiwiSaver at age 18, 35, or retirement.
"A baby born this time next year and enrolled in a growth fund could have $5000 in their KiwiSaver by the time they're 18, with just the $1500 Baby Boost payment and no other contributions - showing the value of compounding returns.
"If their parents contribute $10 a week until their child reaches 18, that $5000 turns into $26,000. Add the contributions that 18-year-old will make once they enter the workforce and their nest egg will be well into six figures by the time they retire.
"National's changes to KiwiSaver also include making a government contribution to a parent's KiwiSaver while they're on paid parental leave, even if the parent isn't contributing themselves at what is often an expensive time for them and their family.
"We will extend paid parental leave from 26 weeks to 30 weeks, so working mums and dads can continue to build their retirement savings while taking this time away from work to care for their baby.
"Furthermore, National will require employers to maintain KiwiSaver contributions for employees over 65, reflecting the fact that many Kiwis choose to keep working beyond this age and should be able to keep building their retirement nest egg.
"This policy isn't just about individual retirement savings. A larger pool of collective KiwiSaver savings makes the country wealthier and gives us more capital to invest in the infrastructure New Zealand needs.
"Strengthening New Zealanders' financial security is central to National's plan to build the future. At the heart of that plan are hardworking New Zealanders and their families, who deserve to get ahead when they work hard and make responsible choices."
The KiwiSaver Calculator can be found here: National's KiwiSaver Calculator
