Latest data reveals hundreds of thousands of self-employed New Zealanders risk retiring financially vulnerable - as they contribute to KiwiSaver at less than half the rate of employees, with many missing out on government contributions.
In a joint report released today, Improving the retirement savings of the self-employed, Te Ara Ahunga Ora Retirement Commission and Hnry shine a spotlight on the growing disparity in retirement savings between self-employed New Zealanders and employees.
The report draws on insights from Hnry’s sole trader platform, the Retirement Commission’s Financial Sentiment Tracker, administrative data on KiwiSaver contributions, and Stats NZ’s integrated data infrastructure.
The 2023 Census identified more than 420,000 self-employed in New Zealand, made up of a diverse group, which includes healthcare workers, tradies, creative freelancers, contractors, consultants, and gig workers.
Key findings from the report include:
● Only 44% of self-employed Kiwis actively contribute to KiwiSaver, compared to 78% of employees (Apr 2024 – Mar 2025).
● 41% of self-employed KiwiSaver members receive no government contribution, often due to irregular income or low earnings.
● 46% of sole traders in Hnry’s Sole Trader Pulse survey cite a lack of spare income as the main barrier to contributing to KiwiSaver.
● 41.9% of sole traders are saving between 1% and 10% of their income from all jobs, approximately 19.4% of respondents reported not saving anything at all.
● 24% of sole traders said they would reduce their KiwiSaver contributions because of Budget 2025 policy change, and a further 6% said they would stop contributing to KiwiSaver altogether.
Retirement Commissioner Jane Wrightson says the gap in retirement savings between self-employed individuals and employees is concerning.
“Self-employed New Zealanders make up a growing share of our workforce, yet they are being left behind when it comes to retirement savings.
“Without meaningful reform, we risk seeing hundreds of thousands of people reach retirement without sufficient financial security. More retirees will rely heavily on government transfers (such as NZ Super and other benefits) and other public support. Today’s inaction could become tomorrow’s fiscal burden.”
The report outlines a range of policy options to improve outcomes for the self-employed based on initiatives already in place in countries like Australia and the United Kingdom. These include:
● Automatic enrolment and opt-out via tax systems or accounting platforms.
● Flexible percentage-of-income contributions.
● Enhanced incentives for low-income contributors.
● Innovative savings products such as linked emergency and retirement accounts.
● Targeted financial education and engagement.
Hnry Chief Executive James Fuller says retirement savings must work for all New Zealanders, regardless of how they earn their income.
“Right now, we have a two-tier system that favours employees, and so far, no Ministers or politicians have been willing to acknowledge it. Sole traders face a very real risk of poverty in retirement unless there is a cross-party consensus and policies that help them save more.
“We hope these findings finally lead the government and Parliament to take this issue seriously. As the only national advocate for sole traders, we will continue to bang this drum until we see some meaningful and real change,” he says.
The report findings will help inform the recommendations the Retirement Commission will make to the Government as part of the 2025 Review of Retirement Income Policies, due to be completed before December.
ENDS
For media inquiries contact:
Retirement Commission
Anika Forsman
0212464302 or anika@retirement.govt.nz
Hnry
Hannah Palframan
02041009362 or Hannah@thornpr.co.nz