2026 OECD Source Brief - Pensions at a Glance NZ Country Notes

The OECD Pensions at a Glance data is the most frequently cited international benchmark by NZ policy makers, Treasury, the Retirement Commission, and advocacy groups. Understanding how NZ ranks and where the data comes from enables advocates and analysts to: - Frame NZ's pension system in international context - Anticipate the arguments Treasury will make about fiscal sustainability - Counter misconceptions (e.g., that NZ Super is unusually generous) - Support evidence-based policy positions on pension age, means-testing, contribution rates, and adequacy - Treasury's 2025 Long-Term Fiscal Statement projects NZS costs rising from 4.9% to 5.8% GDP by 2040 and ~8% by 2060 - The 2026 Budget included no change to NZ Super settings - ACT Party policy proposes raising NZ Super age to 67 over 20 years — this becomes a central election issue - NZ First has positioned itself as the defender of NZ Super at age 65 - The Retirement Commission's 2025 Review of Retirement Income Policies is expected to address adequacy and sustainability - KiwiSaver auto-enrolment (2018) was a step towards higher coverage, but contribution rates remain low 1. 'NZ Super replaces just 43.8% of average earnings — compared to 63.2% across the OECD' — adequacy framing (updated 2025 OECD data from 39% in 2023 edition) 2. 'NZ spends ~4.9% of GDP on pensions — well below the OECD average of ~8%' — but be careful: this can be used to argue either for cuts (it's efficient) or increases