Retirement savings gap emerging between self-employed and employees
A joint report from the Retirement Commission and accounting firm Hnry called Improving the retirement savings of the self-employed, found self-employed workers contribute to KiwiSaver at less than half the rate of employees, with many missing out on Government contributions.
Only 44% of self-employed Kiwis actively contribute to KiwiSaver, compared to 78% of employees between April 2024 and March 2025, according to the report.
Meanwhile, 41% of self-employed KiwiSaver members receive no government contribution, often due to irregular income or low earnings.
“Self-employed New Zealanders make up a growing share of our workforce, yet they are being left behind when it comes to retirement savings,” Retirement Commissioner Jane Wrightson said.
“Without meaningful reform, we risk seeing hundreds of thousands of people reach retirement without sufficient financial security.”
This could leave more retirees relying heavily on Government transfers – such as NZ Super and other benefits – as well as other public support, Wrightson said.
“Today’s inaction could become tomorrow’s fiscal burden.”
According to the 2023 Census, New Zealand has more than 420,000 self-employed individuals.
However, recent changes to KiwiSaver announced in this year’s Budget could further diminish retirement savings for self-employed.
From July 1, the Government’s contribution was reduced from 50c for every $1 to 25 cents for every $1 contributed up to $260.72.
The report said the policy change will reduce the retirement savings of self-employed KiwiSaver members, as they face the reduction in the Government contribution with no increase in employer contributions to offset this.
Hnry’s Sole Trader Pulse survey, commissioned two weeks after the Budget, found 24% of sole traders said they would reduce their KiwiSaver contributions because of Budget 2025 policy changes.
A further 6% said they would stop contributing to KiwiSaver altogether.
James Fuller, Hnry chief executive, said retirement savings must work for all New Zealanders, regardless of how they earn their income.
“Right now, we have a two-tier system that favours employees.
“Sole traders face a very real risk of poverty in retirement unless there is a cross-party consensus and policies that help them save more.
“We hope these findings finally lead the Government and Parliament to take this issue seriously.”
The report outlined policy options to improve outcomes for the self-employed based on initiatives already in place in other OECD nations, including:
Flexible percentage-of-income contributions;
Enhanced incentives for low-income contributors;
Innovative savings products such as linked emergency and retirement accounts.
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Christmas gifts stolen from parked car prompts warning over holiday break-ins
An Auckland man whose Christmas presents were stolen from his car on a quiet street is warning others not to repeat his mistake.
Police and the AA say opportunistic thieves are breaking into cars more frequently during the Christmas period.
Jeremy Rees, an RNZ staff member in Auckland, had packed his car full of gifts when he decided to visit a friend.
“Everyone had handed over presents and we had a couple of bags full of presents sitting in the back of the car,” he said.
“I decided it would be great to go around and see a friend, drop off some presents and say hello. My wife said to me, ‘Are you sure we should be taking this car?’ I said, ‘I’m sure it’ll be fine’.
“I think it was only 20 minutes outside their house, a very quiet street. It was light [outside]. We came out and my wife pointed out that someone had smashed the rear window, reached in and grabbed the presents, and headed away.
“It was a shock. It was a shock partly because of the Christmas presents and partly because my wife had been telling me, ‘Don’t do that’.”
AA Insurance head of motor claims Beau Paparoa said roadside staff were responding to smashed windows more often.
“We definitely see car break-ins starting to occur a lot more around this time of year. We’re often hearing from customers and some of our roadside teams that there’s definitely a bit more opportunistic theft happening,” he said.
“We’re putting that down to it being a busy time of year. Everyone’s out doing their Christmas shopping and there’s much more presence of gifts and valuables being visible in the car.”
He encouraged people to be careful and make sure valuables were hidden from view.
“In terms of any valuables, if you’ve done some Christmas shopping, or if generally you’ve got valuables in your car, try [to] keep them locked away or out of sight – in your boot if you can,” he said.
“Where you’re parking is possibly a good thing to think about. If you can afford to, don’t park on the street, but if you have to park on-street, make sure you park in well-lit areas.”
Police said it was not uncommon for Christmas presents to be stolen.
“The key is to remove any opportunity. This includes taking valuables or documents out of vehicles wherever possible,” a spokesperson said.
Rees said he wished he had followed that advice.
“I feel a bit stupid, to be absolutely honest. I read all of the things from police saying ‘don’t do this, don’t pack your car, don’t just leave it on the street’, and I did exactly the opposite and I paid the price.”
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Auckland Harbour Bridge summer works
NZ Transport Agency Waka Kotahi is carrying out essential maintenance on the Auckland Harbour Bridge this December and January. The southbound clip-on lanes will be closed (24/7) from 26 December to 5 January for road resurfacing. Night-time lane restrictions will be in place throughout the summer for recoating work on the bridge. Traffic will still be able to travel in both directions at all times.
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