National has announced a proposed package of KiwiSaver changes ahead of New Zealand’s general election on 7 November 2026.
It is important to note that these are policy proposals, not confirmed law. They would only proceed if National is re-elected and the necessary legislation is passed. The details, timing and final form could also change.
For people who have moved to New Zealand with a UK pension, the announcement is still worth understanding. It may influence the wider retirement savings environment here, even though it does not directly change the current rules for transferring a UK pension.
What has been proposed?
National has said that, if re-elected, it would:
make KiwiSaver, or an equivalent retirement savings scheme, compulsory for people in work from 1 July 2028
automatically enrol babies born in New Zealand into KiwiSaver from 1 July 2027, with a proposed $1,500 “Baby Boost” contribution
provide a government KiwiSaver contribution for eligible parents receiving paid parental leave, even where they are not making their own contributions
require employers to continue making KiwiSaver contributions for eligible employees aged over 65 from 1 July 2027.
The party has also said it intends to increase default employee and employer contribution rates over time, reaching 6% each by 2032.
What is already happening under current rules?
Some KiwiSaver changes are already in place and are separate from this proposal.
From 1 April 2026, the default employee and employer contribution rate increased from 3% to 3.5%. It is scheduled to increase again to 4% from 1 April 2028. A temporary reduction to 3% may be available in some circumstances.
Under the current rules, employers generally make compulsory KiwiSaver contributions for eligible employees aged under 65. KiwiSaver deductions from paid parental leave payments are optional. Where a person chooses to have deductions made, Inland Revenue also makes an employer contribution of 3.5%
Does this change UK pension transfer rules?
Not directly. National’s KiwiSaver announcement does not set out changes to HMRC’s requirements for overseas pension transfers or to New Zealand’s tax treatment of transferred overseas pensions.
A UK pension transfer and a KiwiSaver account can involve different rules, depending on the pension scheme, the receiving New Zealand scheme and your personal circumstances. Some transfers may involve a New Zealand qualifying recognised overseas pension scheme, often referred to as a QROPS.
That means a decision about whether, when or how to transfer a UK pension should not be based solely on a political policy announcement.
Why it may still be relevant
For many people moving from the UK to New Zealand, retirement planning may involve more than one source of savings. This could include a UK pension, a KiwiSaver account, other investments and, later on, New Zealand Superannuation eligibility.
If compulsory KiwiSaver contributions were introduced in the future, it could affect how much of your income is directed toward retirement savings while you are working in New Zealand. That may be relevant when considering your overall long-term financial position.
However, it is only one part of the picture. Pension transfer decisions can also involve tax, timing, access rules, scheme features and your longer-term plans.
What should you do now?
There is no immediate action required because these proposals are not current law.
It may still be a useful time to review your wider retirement position, particularly if you have a UK pension and are now building savings in New Zealand. Understanding how each part of your retirement planning fits together can help you make informed decisions as rules and circumstances change.
If you would like to discuss a UK pension transfer or your retirement options after moving to New Zealand, please get in touch.
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.
