The change would be phased in, going up 0.5 percentage points a year a year from 2029.
“If you’re a New Zealander who does the right thing by working hard and saving for the future, you deserve to get ahead. National backs you every step of the way,” Luxon said.
Employer contributions would also go up. As the Government is the largest employer in the country, it would be on the hook for an additional $90 million a year for each gradual increase in contribution rates.
National says departments would need to find this money from their existing baselines, which would put further pressure on public service funding.
The party said some funding for the cost pressures would be “met from future Budget allowances if required”.
People will still be able to opt-out of KiwiSaver if they choose, or to contribute at a lower rate if they wish. The bottom 3% rate will remain, if people choose it.
More to come…