The Retirement Commission has released its 2025 Review of Retirement Income Policies, setting out 12 practical steps to strengthen New Zealand’s retirement income system, including KiwiSaver and NZ Super. Many of the suggested changes are low-cost and could be introduced quickly, but together they aim to make retirement fairer, more flexible, and more secure for a wider range of New Zealanders. The recommendations are below:
More support while you’re working
- Boost the government KiwiSaver payment during parental leave to $1,000 for each period of leave, even if the parent cannot contribute themselves.
- Increase government top-ups for low‑income earners so their KiwiSaver savings build more quickly over time.
- Remove rules that block some groups – such as over‑65s and temporary visa holders – from fully benefiting from KiwiSaver, including matched employer and government contributions.
- Stop “total remuneration” pay deals where employers’ contributions are grossed-up in an employee’s pay.
Making the system work better
- Improve KiwiSaver data and reporting (for example on balances, contributions and hardship withdrawals) so decision-makers can see what is working and where gaps remain.
- Make it easier to access KiwiSaver in genuine hardship and ensure payroll systems can keep employer contributions going during parental leave.
- Pilot “sidecar” or emergency savings accounts to help people handle unexpected bills without derailing their long‑term savings.
- Develop better options and guidance for how people draw down their KiwiSaver after age 65, helping money last while staying flexible.
Long‑term stability and confidence
- Create a new cross‑party political agreement on retirement income so settings are more stable over time.
- Establish a parliamentary working group to steer a 10‑year retirement income plan.
- Set up a broad advisory group (government, industry, community) to help put that plan into practice.
- Ensure the 10‑year roadmap covers KiwiSaver, NZ Super, and future innovations in retirement products and income.
What this means for you If these recommendations are adopted, they would strengthen support for people who currently face the biggest barriers to saving, including younger savers, low‑income earners, parents taking time out of the workforce, older workers and migrants who settle in New Zealand.
