How does New Zealand's pension system compare internationally?
New Zealand's retirement system has achieved its highest-ever ranking in the CFA Institute Global Pension Index, moving up to 15th place globally. While the system is praised for its integrity, experts note that improvements in adequacy are still needed to ensure long-term financial security for retirees.
Why it matters
Pension system sustainability is a critical economic issue for aging populations worldwide, and international rankings provide benchmarks for policy reform.
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New Zealand's retirement system has moved up in a world ranking - but increasing contribution rates could push it even further, the research's lead author says.
Marsh has released its latest CFA Institute Global Pension Index, which rates schemes around the world on their integrity, adequacy and sustainability. It includes both NZ Super and KiwiSaver in its assessment of New Zealand's system.
This year, A-rated schemes included Netherlands, Denmark, Iceland, Singapore, Israel and, for the first time, Australia.
New Zealand recorded its best ever result, a B and 15th out of 55 system. The score increased this year because of higher net income replacement rates and a high household savings rate. Our scheme is most weak on adequacy at 34 out of 55.
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