Every three years, we’re asked to undertake a review of New Zealand’s retirement income policies.
The 2025 Review of Retirement Income Policies (RRIP) will focus on research relating to KiwiSaver and other savings, emerging trends and how these will play out over the next 25 years, the experiences of women and the self-employed in retirement, spending down retirement savings and how New Zealand’s retirement policies compare globally.
This review will support the development of recommendations to ensure New Zealand’s retirement income system remains fit for purpose.
2025 Terms of Reference
The Terms of Reference for the 2025 Review of Retirement Income Policies have been issued by the Minister of Commerce and Consumer Affairs, Hon Andrew Bayly.
We welcome submissions related to topics covered in the Terms of Reference. Please send them to submissions@retirement.govt.nz before 30 June 2025.
Research Aotearoa New Zealand in 2050: preparing our retirement income policies for the future
New Zealand Institute of Economic Research (NZIER) was commissioned by Te Ara Ahunga Ora Retirement Commission to explore what Aotearoa New Zealand might look like in 2050 and how retirement income policies may need to adapt. This report draws on existing projections from NZ Stats and Treasury and, in some cases, extends them to 2050 using simple linear prediction models but does not account for underlying drivers.
New Zealand will look quite different in 2050. The population will be larger but growing more slowly than today. Due to a combination of declining birth rates and increasing longevity, the population will be much older, with about 50% more people over 65. The population will also be more diverse, with more Māori, Asian and Pacific Peoples. More people will be retired, and fewer will be available for work. Despite this, the economy could be more than 50% larger than it is today due to the steady march of technological progress.
Assuming current settings do not change, government spending on NZ Super and health will be higher because more people will be retired. At the same time, there will be a smaller share of workers to fund government expenditure.
NZIER Australia vs NZ comparison paper
In preparation for the 2025 RRIP, NZIER, with support from Te Ara Ahunga Ora Retirement Commission, analysed the performance of the New Zealand and Australian retirement income systems. Australia and New Zealand boast robust retirement systems, with Mercer recently ranking Australia's as a B+ and New Zealand's as a B – but with some areas for improvement.
In NZIER’s report the schemes of both countries were evaluated against five criteria with key findings as follows: Adequacy: New Zealand’s system appears to provide higher incomes relative to the working age population on average. Equity: While New Zealand’s system reduces income inequality in retirement, Australia’s system perpetuates inequalities from working years. Sustainability: Government spending on the system is expected to increase over time in New Zealand but remain constant in Australia. Impact on savings and investment: Australia’s system has a larger effect on savings due to compulsory contributions and higher rates. Impact on labour and wages: Australia’s system discourages working at pension age, resulting in lower labour force participation.
While both systems have their strengths and weaknesses, the comparison offers important lessons for New Zealand.
Older people's voices paper
To supplement research addressing specific Terms of Reference, the Retirement Commission also spent time speaking with a range of New Zealanders aged 65 or older, in particular focusing on their financial lives. The most recent project involved both qualitative interviewing and quantitative surveying nationwide. By segmenting the participants according to their underlying attitudes to money, we were able to gain a richer understanding of the financial lives of older New Zealanders and test the ‘golden assumption’ that over 65s today are mortgage-free couples living in relative comfort. Case studies and stories from participants involved in the focus groups and interviews are interspersed throughout the report to bring to life the experiences of older New Zealanders.
KiwiSaver Employer Contribution Insights
Te Ara Ahunga Ora Retirement Commission worked with the New Zealand Policy Research Institute (NZPRI) at AUT to investigate employer KiwiSaver contribution patterns using Stats NZ’s Integrated Data Infrastructure (IDI). The research focused on understanding more about the number and type of employers who contribute above the minimum rate of 3%, and employer contributions for those aged under 18 and over 65 as these two groups are exempt from the requirement for employers to make KiwiSaver contributions.
The research finds that only a small percentage of organisations are contributing above the minimum rate of 3%, however many more organisations make contributions for those under age 18 and over 65, even though this is not legally required. There are wide variations across industries as well as differences depending on the size of the organisation.