KiwiSaver shortcomings identified in global report

The Mercer CFA Institute Global Pension Index compares 48 retirement income systems based on their adequacy, sustainability and integrity. New Zealand is ranked 14 out of 48 overall, landing in the top 20 for both sustainability and integrity, but slipped from 25th last year to 28th in 2024 for adequacy. New Zealand’s placing earns it a “B” grade.

“KiwiSaver is the fastest growing invested asset in the country, having surpassed $100 billion NZD,” said Mercer New Zealand’s Consumer Wealth Leader Sarah Whitelock. 

“As the KiwiSaver system matures, and we are starting to see the benefits play out for retirees through a supplemented retirement income, we now need to ensure that savers of all ages understand the importance of retirement planning and decumulation strategies.”

A focus on ensuring people understand retirement income is the core purpose of KiwiSaver would help improve the system, as well as further education for savers on how to turn their nest egg into an income during retirement.