Lessons from across the Tasman:  Comparing the Australian and New Zealand retirement income systems - NZIER working paper 2024/01

Comparing Australia and New Zealand can provide useful lessons in many areas, and retirement income policy is no different.

Since 1992, Australia has operated a compulsory savings scheme along with a means-tested government-funded pension to address pensioner poverty. In contrast, New Zealand's system consists of NZ Super – a universal public pension – and KiwiSaver – a voluntary savings scheme introduced in 2007.

In our latest Public Good working paper, supported by Te Ara Ahunga Ora Retirement Commission, we compare the two systems and assess them against five key criteria. While both systems have their strengths and weaknesses, the comparison offers important lessons for New Zealand.