Finance Minister Nicola Willis says she’s cynical about superannuation reform after Labour betrayed her.
Labour rejected the claims after Willis today addressed the Financial Services Council (FSC).
Her speech was made soon after National’s coalition partner New Zealand First said it would campaign on compulsory KiwiSaver contributions rising to 10% and offsetting it with tax cuts.
Willis indicated the NZ First policy was unaffordable.
“I see the ambition and I appreciate that the idea on increasing contributions to KiwiSaver over time is a positive one,” she said.
But the crowd heard the policy could cost $15 billion a year.
“We’re spending $20b a year on our entire education system, $30b a year on health, $30b a year over the next few years into superannuation annually,” Willis said.
“And so that’s a lot of money.
“The key thing for me is that at the moment, every New Zealander does make a compulsory contribution to their pension.
“It’s just that we pay it through tax and that’s to fund our universal pension scheme, which the Australians don’t have.
“The real question that we should all be left with is, if you’re requiring a compulsory contribution to a private scheme, while also requiring the level of taxation needed to support a universal scheme, can you do both at once?
“I’d suggest that ultimately, those of us who have to worry about the fiscals, I would say there probably needs to be a more subtle combination of the two.”
Willis mentioned last year’s Mood of the Boardroom speeches.
She said Labour finance spokeswoman Barbara Edmonds supported calls for KiwiSaver reform but was shut down by her party.
“We’re talking about the big challenges that New Zealand needs to confront, and I turn to the Labour opposition finance spokesperson and I said, I’ll tell you one we need to talk about.
“Let’s talk together about superannuation, our scheme, and how we can make it sustainable over time. And she, I think instinctively and authentically said, ‘I’m up for that, let’s do it’.
“Half an hour later, the press release had gone out saying that that was spoken in error and no such conversation would be [had].”
Edmonds told Stuff soon after the debate it had “only been a few hours” since her and Willis spoke together at the event and she was “surprised” about the superannuation questions.
Willis today said the experience with Edmonds made her “cynical” about whether cross-party consensus on KiwiSaver would occur.
“Barbara, if you’re up for tough conversations, at the last election my party started a tough conversation about New Zealand superannuation.
“I invite you to join me in continuing that conversation,” Willis said at the debate last year.
Edmonds that day said she was happy to have the debate, after both were asked about various economic challenges.
Edmonds today told the Herald: “Nicola Willis claimed that meant we were open to raising the age of superannuation. That’s not our policy, so I clarified it.
“She’s making a habit of going after others to mask her own failures that have made the economy worse and have led to a record number of people leaving New Zealand.”
According to Stats NZ, annual migrant departures provisionally peaked at 127,500 in the year ended June 2025.
Annual net outflows of New Zealand citizens hit a record high of 47,600, driven by migration departures strengthening to a record 73,480.
The FSC conference is on in Auckland today and tomorrow.
Willis today also told the conference, while discussing superannuation: “I believe that on these issues, if we can get a consensus that results in enduring change, that is the most stable thing for everyone involved.”
She said the cost of living was the biggest issue for most New Zealanders now.
Willis said KiwiSaver should be “the vehicle through which we tell the story of how New Zealanders can make their own personal retirement nest egg and then that allows us to ask questions about what the state provides in the future”.