Jane Wrightson KiwiSaver Proposals: Roadmap to Retirement Equity

New Zealand’s retirement system is at a crossroads. After 18 years of KiwiSaver, the 2025 Review of Retirement Income Policies argues that the scheme still leaves too many people behind—and calls for something rare in modern politics: cross-party agreement on a 10-year roadmap. Jane Wrightson, the Retirement Commissioner, has laid out 12 steps aimed at fixing the gaps, and the financial stakes are significant, with $545 million in government subsidies slated for 2025/26.

Government KiwiSaver subsidies 2025/26: $545 million · Retirement Commissioner’s 12 steps: To fix KiwiSaver and NZ Super · Proposed retirement age change: Denmark to 70 · Government KiwiSaver contributions: Stop at age 65 · Top SERP date: 14 Nov 2025

The table below summarises the key facts underlying the 2025 review’s case for reform.

When you turn 65 do you get all your KiwiSaver?

At 65, KiwiSaver members gain access to their full balance, but conditions apply. The government stops contributing at this age, and withdrawals aren’t automatic—members must actively initiate the process. BNZ’s guidance notes that while the funds become available, choosing how to draw them down requires planning.

Access options at 65

Members can withdraw their entire KiwiSaver balance once they reach 65 and meet the membership requirements. Options include lump-sum withdrawal, leaving funds invested, or a combination. The review proposes a nationally consistent decumulation framework to help retirees manage drawdowns strategically.

Withdrawal rules

The current system requires members to be in KiwiSaver for at least five years before accessing savings. Once eligible, there are no restrictions on how much can be withdrawn. However, the proposed framework would standardise retirement drawdown options across providers, aiming to prevent retirees from depleting funds too quickly.

How much should your KiwiSaver balance be at your age?

Balance benchmarks vary widely, but the Retirement Commissioner’s review flags that many New Zealanders—particularly women, Māori, and Pacific peoples—have insufficient savings for a comfortable retirement. The annual government contribution of $260.72 delivers more impact for low-income workers, but gaps remain significant.

Average balances by age

Official anonymised data integration proposed in the review would improve transparency on savings gaps. Currently, reporting of balances, contributions, and withdrawals lacks the granularity needed to target interventions effectively. The Commissioner wants stronger data to identify who is genuinely on track.

Growth strategies

The review calls for improved KiwiSaver admin processes, including hardship withdrawals and better payroll integration for parental leave. Design and trial of sidecar or emergency savings accounts alongside KiwiSaver would give members additional flexibility to build reserves without sacrificing retirement savings.

At what age does the Government stop contributing to KiwiSaver?

The Government stops making KiwiSaver contributions at age 65—a ceiling the review explicitly challenges. The annual $260.72 contribution stops regardless of employment status, meaning a 67-year-old still working full-time receives no government support, unlike younger counterparts.

Contribution limits

Currently, government contributions cap at 65, and employer contributions often cease as well. This creates a cliff where workers approaching traditional retirement age lose compound growth benefits. The review proposes mandating employer contributions for people aged 65 and above, treating continued employment as retirement planning rather than an afterthought.

Proposals for change

The 2025 review recommends extending government contributions beyond 65 and mandating employer contributions for older workers. The move aligns with international best practice by recognising that retirement ages are rising and that more people work past 65. Denmark’s decision to raise its retirement age to 70 reflects a similar global trend.

What happens to KiwiSaver if I move overseas?

For New Zealanders considering permanent emigration, KiwiSaver withdrawal rules become critical. Those leaving the country permanently face restrictions—funds cannot be withdrawn as easily as for domestic retirement, and accessing savings requires meeting specific criteria.

Permanent move rules

Members relocating permanently can typically withdraw their KiwiSaver balance, but the process involves documentation and potential delays. The review’s proposed improvements to admin processes may streamline transitions for expats, though current rules remain complex. Consulting a financial adviser before departure is strongly recommended.

BNZ advice

BNZ guidance emphasises checking whether your destination country has a double tax agreement with New Zealand, as this affects how withdrawals are treated. Temporary visa holders, by contrast, are currently excluded entirely from joining KiwiSaver—a gap the review wants to close by allowing them to participate and receive matched contributions.

What is the biggest mistake most people make regarding retirement?

Jane Wrightson has warned against “tinkering” with retirement policy rather than pursuing systemic reform. For individuals, the biggest mistake is often leaving contributions unoptimised—particularly missing out on the government match by not contributing enough to receive the full annual $260.72 contribution.

Common pitfalls post-retirement

Retirees frequently withdraw funds too quickly or too slowly, missing optimal drawdown windows. The review’s proposed decumulation framework would provide guidance, but without it, members must self-manage a process that most people lack the expertise to navigate alone. Self-employed workers and those with irregular income face particular challenges.

KiwiSaver specific errors

Many members remain in default conservative funds that prioritise capital preservation over growth, particularly in earlier life stages when higher-risk, higher-return options would compound more effectively. The review also flags that total remuneration policies—where employers include KiwiSaver in total pay packages—effectively reduce the real value of contributions for some workers.

The 12 Steps in Detail

Seven of the 12 recommendations directly target KiwiSaver reforms, addressing contributions, coverage, and administration. The remaining five focus on long-term stewardship, data improvement, and cross-party governance. The review sequences quick wins—like KiwiSaver tweaks—alongside structural changes for sustained impact.

The list below presents the key recommendations from the 2025 review.

• Increase government KiwiSaver contributions for low-income earners while phasing out for higher earners (Good Returns)
• Extend government parental leave contribution to $1,000 per period, regardless of member contributions (Good Returns)
• Allow temporary student or work visa holders to join KiwiSaver with matched contributions (Good Returns)
• Mandate employer KiwiSaver contributions for people aged 65 and above (KASPANZ)
• Ban total remuneration policies that include KiwiSaver in total pay packages (Retirement Commission NZ)
• Strengthen reporting with anonymised data integration for better policy targeting (Retirement Commission NZ)
• Improve admin processes including hardship withdrawals and payroll integration (Retirement Commission NZ)

The remaining five recommendations establish the governance structure for implementation: a cross-party accord, Parliamentary working group, pan-sector implementation body led by the Retirement Commission, sidecar savings account trials, and a decumulation framework.

Timeline

KiwiSaver launched in 2007. The 2025 review, released on 14 November 2025, follows the triennial cycle mandated for Retirement Commissioners. Terms of Reference were issued by Minister Andrew Bayly prior to the review’s commencement.

The key milestones show how KiwiSaver has evolved over its 18-year history.

Confirmed facts vs. What’s unclear

The tension between the Commissioner’s 12-step framework and industry criticism highlights that consensus on the depth of reform remains elusive.

What experts say

The message is clear. We need a long-term political accord to focus on providing certainty for future generations of retirees and stop piecemeal policy change.

— Jane Wrightson, Retirement Commissioner (Good Returns)

These changes would better reflect the diversity of NZ’s workforce and align KiwiSaver with international best practice.

— Jane Wrightson, Retirement Commissioner (Good Returns)

If no extra funding is available, the recommendations in the 2025 review could be put in place at no additional fiscal cost to the government by reallocating existing spending.

— Jane Wrightson, Retirement Commissioner (KASPANZ)

The review positions KiwiSaver as 18 years old but still incomplete. Wrightson argues the system works for many but systematically fails groups including women, Māori, Pacific peoples, self-employed workers, and those on low incomes. The cross-party accord seeks to move beyond electoral cycles where retirement policy becomes a bargaining chip.

Summary

Jane Wrightson’s 2025 review presents a detailed case for restructuring KiwiSaver subsidies to prioritise those who need them most. With $545 million in annual subsidies and seven of 12 recommendations targeting the scheme directly, the financial stakes are high. The cross-party accord is the review’s most ambitious ask—if achieved, it could end the cycle of electoral tinkering that has left gaps for women, Māori, Pacific peoples, and low-income workers. The next triennial review in 2028 will reveal whether New Zealand’s retirement system moves toward reform or settles for incremental adjustments.

Whether Parliament acts on Wrightson’s roadmap before 2028 will determine whether the 2025 review becomes a turning point or another entry in a long history of retirement policy inertia.

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Wrightson’s proposals for low-income boosts gain urgency amid surging KiwiSaver hardship withdrawals in 2025, revealing persistent saver vulnerabilities.

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