United Future leader Peter Dunne has come out in favour of making KiwiSaver compulsory and Labour says National is now isolated in its opposition to the policy.
Mr Dunne, who is revenue minister, says attitudes have changed substantially since the 1997 referendum when 93 per cent of voters rejected compulsory retirement savings.
"Personally I have always favoured the idea and I believe New Zealanders are coming round to it," he said in a speech to the Credit and Finance Institute today.
"I acknowledge compulsory KiwiSaver is not government policy, but the wider debate indicates an understanding of the importance of national savings."
Mr Dunne says Kiwis have an increasingly mature and "real view" of the world, and how they need to prepare for their future.
Labour's policy is to make KiwiSaver compulsory and finance spokesman David Parker says National is out of touch.
"After five years, KiwiSaver has proved a huge success," he said.
"Expanding it to every employee will increase savings, which will help to grow our economy and reduce overseas debt."
Mr Parker is welcoming Mr Dunne's comments.
"One of the government's own ministers clearly accepts the need for change," he said.
NZN