Nicola Willis speaks to Ryan Bridge about changes to KiwiSaver. Video / Herald Now
Finance Minister Nicola Willis confirmed raising the superannuation age is still being considered by National.
The Government will halve its KiwiSaver contributions, affecting those earning over $180,000 annually.
KiwiSaver default contribution rates will increase to 3.5% next year and 4% from April 2028.
Finance Minister Nicola Willis has confirmed raising the superannuation age was still on National’s radar after they campaigned on it in the last election.
She also fielded more questions on whether Kiwis would really be better off after halving Government KiwiSaver contributions, saying people, particularly small businesses that arepushing back on the decision, need to think about the long-term savings.
She told Herald NOW‘s Ryan Bridge that it was clear the burden of superannuation is growing extensively.
She said it was on her “radar” as the election edges closer.
“I think there are some benefits with universal superannuation… and if you are to make any change to that area we have to phase it in over a large period of time."
Willis said at this point it was not on their mandates or the coalition agreement, so it would be unlikely to go forward before the 2027 election.
Finance Minister Nicola Willis, during the reading of the Budget 2025. Photo / Mark Mitchell.
Willis also fielded more questions about the KiwiSaver cuts announced in last week’s Budget would actually be putting more money in Kiwi’s pockets when the contributions are being halved.
Announced as part of Budget 2025, the Government is halving the contribution it makes to KiwiSaver members to a maximum of $261 a year and scrapping the contribution altogether for members who earn more than $180,000 a year.
Willis will instead push people to do more to save for their own retirements, lifting the default KiwiSaver contribution rate for both employees and employers from 3% to 3.5% from April next year, and 4% from April 2028.
The changes will also require employers to make contributions to 16 and 17-year-olds who save into the scheme and extend the government contribution to this cohort.
“If this was the only thing we have done in our budget, then that would be a concern, however, it’s not.”
She was confident it would not affect the wages of Kiwis and they would actually be growing.
“By making a small contribution more… dollar for dollar that contribution being matched by your employer… we will be seeing growth of up to 28%."
Willis said small businesses and independent contractors would be able to work through it “in their own way” and it would depend on the wage negotiations.
She argued people would be better off in the long term.
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