KiwiSaver at a crossroads: budget another missed opportunity to fix NZ’s underperforming retirement scheme
Year: 2025
Type: other
Abstract: When KiwiSaver was introduced in 2007 it was built on a stark reality: New Zealand Super alone will not be enough for most people to retire with dignity.As the population ages and the cost of superannuation continues to climb, the gap between what the state provides and what retirees actually need is only going to grow.KiwiSaver was designed to bridge that gap -to give New Zealanders a fighting chance at financial independence in retirement.But changes to KiwiSaver laid out in this year's budget undermine what was already an underperforming scheme.Despite 17 years of operation, KiwiSaver balances remain shockingly low.As of mid-2024, the average sits around NZ$37,000.That's barely enough for a couple of years' worth of modest top-ups, let alone funding a comfortable retirement.For many nearing retirement, balances are even lower.And about 40% of members aren't actively contributing.That includes people on contribution holidays, in irregular work, or who opted out altogether.Many accounts are effectively dormant "ghost accounts" created by auto-enrolment and never activated. Lynn Grieveson/
Author: Aaron Gilbert
Institution: Auckland University of Technology
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7084140734
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