The Retirement Commissioner has called for cross-party action on the retirement income system, laying out a practical plan for what to do now while preparing for the challenges ahead.
Retirement Commissioner Jane Wrightson said New Zealand’s population is ageing. Work and caregiving patterns are shifting, home ownership is declining and KiwiSaver, now nearly two decades old, is maturing.
To better understand these challenges and where there are opportunities to improve the system, Te Ara Ahunga Ora Retirement Commission is required to undertake a triennial review of retirement income policies. It provides the Government with independent advice on how retirement income policies are performing and what changes might be needed.
The 2025 review draws on a substantial body of research, including 15 reports and a special edition of Policy Quarterly, and reflects the voices of older New Zealanders, the insights of experts and the values that underpin the retirement income system.
“The review provides a chance to pause and take stock. It marks how far we have come, and where we need to go next,” she said.
“The message is clear. We need a long-term political accord to focus on providing certainty for future generations of retirees and stop piecemeal policy change. That means improved governance, inclusive policy and a retirement income system that works for everyone.”
The 2025 review makes 12 recommendations to the Government, including targeted policy reforms to address the most pressing gaps, particularly those affecting groups who have historically missed out or face barriers to participation.
This includes a recommendation to extend the Government’s KiwiSaver parental leave contribution to NZD 1,000 per parental leave period, regardless of whether the member makes contributions.
The Retirement Commissioner also recommends increasing KiwiSaver government contributions to those on low incomes.
She would also like to see the removal of unnecessary KiwiSaver exclusions for people aged over 65 and those on a temporary work visa.
“These changes would better reflect the diversity of New Zealand’s workforce and align KiwiSaver with international best practice,” the Commissioner said.
“If no extra funding is available, the recommendations in the 2025 review could be put in place at no additional fiscal cost to the Government by reallocating existing spending on the government contribution to where it will have the most impact.”
Although this approach would mean fewer people would receive the government KiwiSaver contribution, they would continue to receive support for their retirement through NZ Super, and through matched and increasing employer contributions to KiwiSaver.
“These actions are designed to improve adequacy, close savings gaps, and ensure the retirement income system remains fair, sustainable and trusted.”
The review also recognises that lasting progress depends on more than just short-term fixes. It calls for stronger stewardship and a more joined-up approach to managing the retirement income system as a whole. This includes building cross-party consensus, improving coordination across government and industry, and developing a long-term roadmap that sets out a clear direction for the next decade and beyond.
“By sequencing actions in this way, the review aims to deliver both quick wins and enduring benefits, supporting fairness, sustainability and public confidence in the retirement income system,” added Wrightson.
“The recommendations in the review are designed to work together as a package. We have identified a practical roadmap for the future with targeted changes we can make now, such as improving KiwiSaver settings and extending support during parental leave, and reforms to strengthen long-term stewardship.”
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