2026 OECD - Economic Survey NZ - Ageing and Pension Recommendations

The OECD recommends linking the age of public pension eligibility to life expectancy, with a maximum age of 69, while considering occupational and ethnic differences in life expectancy. - Current NZ Super eligibility age: 65 - National Party policy: raise to 67 from 2044 (Coalition Agreement with ACT) - NZ First: opposes any change - Labour: opposes raising the age The OECD recommends switching NZ's current Taxed-Taxed-Exempt (TTE) system to an Exempt-Exempt-Taxed (EET) system — i.e., make contributions and investment earnings tax‑free, but tax withdrawals. This aligns NZ with 31 of 38 OECD countries. - Increase contribution rates (Budget 2025: default 3% → 3.5% in 2026, 4% in 2028) - Target 10–12% for higher‑income earners (similar to Australia's Superannuation Guarantee) - Restrict first‑home withdrawal rules - Enable regulated 'private‑asset' fund options The OECD recommends a combined public and private pension and NZ Super Fund reform strategy. The OECD recommendation adds to pressure from Treasury (LTFS 2025), the Retirement Commission, and NZIER for superannuation age reform — but the Government has explicitly ruled out action in the short term, likely ahead of the 2026 election.