ACT has pledged to remove tax on KiwiSaver earnings and scrap Government contributions at the party's election campaign launch today.
Leader David Seymour said the changes would let returns "stay invested and generate savings for generations to come".
"If you save for the future we will let you get the full benefit of compounding returns instead of taxing you every step of the way," he said.
Seymour believed the proposed policy could double savings for some workers before retirement, with accounts potentially collecting hundreds of thousands more.
"Put it this way. Over a 42-year career, a 10 per cent return could double your savings nearly six times, compared with only four times at seven per cent, leaving you with roughly three times as much at retirement," he explained.
“This policy would help a 20-year-old builder earning $60,000 save an extra $209,486 by the time they turn 65."
The party also revealed it would end government contributions, saying KiwiSaver members' accounts would instead receive a "new tax treatment".
Seymour explained KiwiSaver savings should be managed and controlled by accountholders, justifying the party's decision to end government contributions.
He said the policy would aim to "unlock New Zealand’s potential by shifting power from the government departments and politicians in Wellington back to you, your family, and your business”.
Taking a swipe at the opposition, Seymour told campaign launch attendees that “other parties want to force your money into KiwiSaver, then tax you".
ACT kicked off their election campaign in Auckland, with candidates stepping out of a new hot-pink bus as broadcaster-turned-politician Paul Henry introduced them.
The launch took place in an industrial shed in Penrose, with former leaders Don Brash and John Banks watching on.
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