The place of KiwiSaver in New Zealand's retirement income framework

This report provides background for the 2013 Review of Retirement Income policy by the Commission for Financial Literacy and Retirement Income (CFLRI) on the role of private savings for retirement, with particular reference to trends in KiwiSaver, and the role of the financial services sector in helping to ensure the adequacy of retirement income for New Zealanders. The report will contribute to the overall review as it considers the ideal future balance between pay as you go (PAYGO) (i.e. tax-based) and save as you go (SAYGO) funding in New Zealand’s retirement income framework. Increases in the cost of NZS arising from demographic change, along with increased expectations of standards of living in retirement, point to likelihood of a greater role for private savings.