The National Party is planning to make KiwiSaver compulsory for all workers and automatically enrol newborns with a $1,500 government contribution at birth. Prime Minister Christopher Luxon wants other parties to back these changes, according to RNZ.

Right now, KiwiSaver is optional. When you start a job, you're automatically put into the scheme but you can opt out if you want. The plan, announced on 20 June 2026, would change this: everyone would have to be in KiwiSaver, with no way out.

Luxon wants all the main political parties to agree on this before Parliament passes the law. Why? Because if one government makes it compulsory and the next government scraps it, people's retirement savings plans get thrown into chaos. Agreement between parties means the scheme is more likely to stay compulsory no matter who's in power.

What's actually changing

Under the proposal, all workers must be enrolled in KiwiSaver — they can't opt out. Newborn babies would also be automatically enrolled, and the government would put $1,500 into their KiwiSaver account when they're born.

Employers currently have to put 3 per cent of your wages into KiwiSaver (this has been the rule since 1 April 2013). That's not changing under this plan.

KiwiSaver already lets some people take their money out early if they have a serious illness. In February 2021, the government published a list of conditions — like Down syndrome and cerebral palsy — that qualify for early withdrawal. Those rules would stay the same.

Why Luxon wants other parties on board

In New Zealand's political system, governments come and go. If National passes a law with just its coalition partners, a future Labour or Greens government could undo it. That's a real risk with something like KiwiSaver, because people and employers need to know the rules won't suddenly change.

Labour has generally liked stronger KiwiSaver rules in the past, and the Greens have supported wider coverage of the scheme. But no one's confirmed yet whether they'll back this plan.

When the bill goes to Parliament's select committee stage, people and organisations will be able to have their say. A key question will come up: does a flat $1,500 payment at birth give the same help to richer and poorer families? Employers with casual or seasonal workers — where lots of people currently opt out — are also likely to raise concerns about the extra paperwork.

The select committee stage will show whether other parties and affected groups can actually get behind this.