Savings are the foundation of a stronger and more prosperous economy. When we save more, there is more capital available to invest in businesses, infrastructure, innovation, and productive assets that drive economic growth and lift living standards. Countries with higher levels of domestic savings are better placed to fund their own growth, create jobs, and build resilience against economic shocks.

Historically, New Zealand has a poor track record with saving. For decades, our economy has relied heavily on overseas borrowing and foreign investment to fund growth. While overseas capital has played an important role in our development, stronger domestic savings will ensure more New Zealand wealth is invested in New Zealand opportunities. That means more investment in businesses seeking to expand, greater funding for infrastructure, and a stronger foundation for long term economic prosperity.

KiwiSaver has been one of New Zealand's most successful savings initiatives, helping millions of Kiwis build financial security for retirement while contributing to a growing pool of national savings. Recognising the importance of increasing savings, the coalition Government recently made changes to KiwiSaver in this year's Budget, including continuing the gradual increase in default contribution rates to strengthen retirement savings and grow New Zealand's capital base.

If re-elected, National has pledged to take further steps to expand KiwiSaver's role in securing New Zealand's economic future. This includes:

• Making KiwiSaver compulsory for all workers from 1 July 2028, ensuring more Kiwis are building savings throughout their working lives. Combined employee and employer default contribution rates would continue to rise to 12 percent by 2032.
• Establishing a $1,500 Baby Boost payment alongside automatic KiwiSaver enrolment at birth from 1 July 2027, giving every newborn a headstart on building long-term savings.
• Enabling government funded KiwiSaver contributions for parents on paid parental leave
• Extending compulsory employer KiwiSaver contributions to workers aged over 65 who remain in employment.

When we came into government, we inherited significant debt and rising interest costs that continue to place pressure on the public finances. Strengthening national savings through KiwiSaver is an important part of building a more resilient economy, reducing reliance on borrowing, and creating the conditions for stronger growth and greater prosperity for future generations.

See you out in our community sometime soon!

Dan Bidois
MP for Northcote

Email: dan.bidois@parliament.govt.nz

Phone: 09 481 1089 

Facebook: @danbidoismp