There are a number of ways to prepare for retirement in New Zealand including KiwiSaver and restricted workplace savings schemes.
The KiwiSaver scheme is New Zealand’s voluntary long-term savings scheme where eligible people can choose to contribute 3%, 4%, 6%, 8% or 10% of their gross pay and employers contribute at least 3%. KiwiSaver members can access the savings on retirement, to purchase their first home or in case of financial difficulty.
The uptake of KiwiSaver far exceeded initial projections from when it started in 2007 and has grown from 716,000 members in 2008 to over 2.97 million members in 2021 who have over $90 billion saved in the scheme. Read the latest industry statistics.
In December 2021, changes to KiwiSaver default providers saw several changes for consumers, including a move towards lower fees, a higher level of service, responsible investment policies and balanced investment settings.
KiwiSaver is having a positive impact domestically, with around 60% of managed funds invested in New Zealand. The new investment driven by KiwiSaver means businesses have the potential to both raise exports, employment and have a greater positive effect on GDP.
The Retirement Commission, industry and Government have gone some way to improve consumers’ ability to save enough for retirement through KiwiSaver, understand the benefits through financial education and ensure transparency, but FSC research into the scheme has shown that there is still a long way to go to help and support New Zealanders shape their own futures.
FSC guidelines: KiwiSaver serious illness and life-shortening congenital conditions processing guidelines
FSC welcomes KiwiSaver announcements – but still more to do
