Key said auto-enrolment would be an option included in a discussion paper to be made public in the next few weeks and that the Government was asking IRD and the Treasury to advise on how auto enrolment might work.
At present the scheme has 1.7 million members while another million people in work have yet to join.
Officials estimate the cost of bringing the additional savers into the scheme, each with the $1,000 'kickstart', would be around $1 billion, though it is also likely the opt-out rate would be higher.
That view was echoed by Workplace Savings New Zealand chairman David Ireland, who told TV One's Breakfast programme many would opt out.
"They will decide it's not for them and carry on doing nothing or making alternative provision," he said.
Default KiwiSaver manager Tower Investment's chief executive Sam Stubbs told Radio New Zealand he believed it was inevitable KiwiSaver would be made compulsory for those in employment.
However, Labour leader Phil Goff expressed concerns about extending the scheme to people who may not have the spare money to put into savings.
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