If elected it will make KiwiSaver universal and compulsory for all wage and salary earners, with employer contributions gradually increasing by 0.5% a year from 3% in 2014 to 7% in 2022.

However, employee contributions will remain at 2% because “many families are struggling with the rising cost of living and will find it hard to save more right now,” according to Labour leader Phil Goff.

“Universal KiwiSaver also reduces our reliance on foreign borrowing and builds up our own pool of savings to invest in Kiwi businesses and create jobs,” Goff said.

“We will be able to own our own future, and grow our economy – not someone else’s.”

The party will phase in the $1000 kick-start for all members at $200 a year for the first five years to reduce the up-front cost to the taxpayer of introducing so many new members at once.

Labour has also promised to increase the age of eligibility for NZ Super from 65 to 67, in contrast to National which says it won’t increase the pension age.

However, Labour’s policy won’t kick in until 2020, after which the age of eligibility will increase by two months a year for the next 12 years.

“By 2050, the number of people aged 65 and over will double to 1.35 million. Our bill for superannuation will also double so it’s vital we plan for our rapidly ageing population now,” Goff said.

“We believe it’s important to tell Kiwis the truth. As our population ages, the cost of superannuation will double and the cost of medical care will rocket upwards.

“Already one in three people aged between 65 and 69 are still in the workforce today and this proportion is projected to increase rapidly.”

Labour will also restart contributions to the NZ Super Fund - which were frozen by National - starting with $750 million in 2012/13, ramping up to around $2.4 billion a year by 2016.