The increased contributions would only make sense if they closed the loophole they introduced themselves regarding total remuneration. Copying someone else’s policy from a decade ago while never acknowledging their own mistake. I guess nothing new here. :)
The successive governments could’ve prioritised narrowing the wealth gap and lowering the cost of living first. Then a policy like this would’ve made a much greater impact. So, while I think making KiwiSaver compulsory is a good idea, it’s a reminder of a lost opportunity.
I mean, if we’re going back in history, it’s relevant to point out: Labour passed “New Zealand Superannuation Act” in 1974 with a compulsory combined rate of 8 percent of earnings. If we had this since then we’d be quite a rich country and we wouldn’t be worried about super at all.
Muldoon’s National Party campaigned on undoing it because it was socialist or communist; and he undid it and then instead rolled out the pay-as-you-go system that we have now which is guaranteed to fall over right about when I’ll be ready to retire, based on numbers from Stats NZ.