[Weekly Wrap]: Compulsory KiwiSaver; An election issue or something else?
I've had an intention to resume a weekly commentary column on happenings in the financial services world. While it is not the end of the week National's compulsory KiwiSaver policy has been the catalyst for this piece (hopefully more will follow!)
Monday, June 22nd 2026, 1:59PM
It would be fair to say National's announcement to campaign on making KiwiSaver compulsory (plus a few other things) wasn't a policy many expected.
Perhaps it is best summed up by Auckland University economist and professor, Leonard Hong and Robert MacCulloch; "For a centre-right government to accept compulsory KiwiSaver is a major philosophical shift. It recognises that personal responsibility sometimes requires strong institutions and pragmatic paternalism to incentivise higher capital accumulation."
"The National Party’s KiwiSaver announcement is one of the most significant shifts in New Zealand politics and economic policy in a generation."
History shows that National has been weak on supporting New Zealand's retirement income policies. Labour has been the driver of all of the big, positive changes. In here I list KiwiSaver, NZ Super Fund and the PIE tax regime along with other initiatives.
Rather than debating the merits of compulsory KiwiSaver, the bigger issue is whether such a change should be a campaign issue or should it be something all political parties sit down and work on in a bipartisan approach?
The latter makes more sense to me.
Making it an election issue makes it a political football and fails to build longevity for the policy.
We know NZ First support compulsory KiwiSaver. ACT, as you'd expect, is not that keen. What does the Labour Party and the Greens think?
Well they have not rushed out offering support. If they did it would remove KiwiSaver from being a political football.
Not unsurprisingly, there has been a flurry of fund manager press releases supporting compulsory KiwiSaver.
Compulsory KiwiSaver must also include that members are getting appropriate advice and does not just become another land grab for providers.
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