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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Poll: Should we be giving the green light to new mining projects? 💰🌲
The Environmental Protection Authority announced this week that a proposed mine in Central Otago (near Cromwell) is about to enter its fast-track assessment process. A final decision could come within six months, and if it’s approved, construction might start as early as mid-2026.
We want to know: Should mining projects like this move ahead?
Keen to dig deeper? Mike White has the scoop.
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53.1% Yes
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46.9% No
Aucklanders, we want to know: How are you feeling about the current property market?
New Zealand homeowners are now more likely to sell at a loss than at any time since 2013, and if you’re in Auckland or Wellington, the odds are even higher.
But there is a silver lining: buyers are still in a strong position when it comes to negotiating prices.
So we’re curious…
How are you feeling about the current property market?
If you’re keen to dive into the details, Deborah Morris breaks down all the latest insights.
‘Tis the season to not get scammed ...
As Christmas gift shopping moves increasingly online, scammers are ramping up their activity across the country.
Dunedin’s Investigation Support Unit is seeing more and more people fall victim to scams and other fraudulent activity, particularly on Facebook Marketplace.
There are a few ways to avoid the scams and keep yourself safe doing online trades this holiday season, says Southern District Service Delivery Manager Senior Sergeant Dalton.
🔒 “A good first step when looking to purchase something on Marketplace is to check when the seller’s Facebook profile was created. If it’s very recent, there is a higher risk that they have just created this account for a one-off fake item.”
🔒 Another important step is to make sure the seller’s profile name and bank account name match up. “We’re seeing a lot of scammers claiming their bank account name is different because it belongs to their partner or family member - that’s a huge red flag."
🔒 “When you’re selling, never trust a screenshot anyone sends you showing that payment has been made. Check your own bank account to make sure a payment has gone through."
🔒 “Quite frankly, it’s best for all parties to agree to pay, or be paid, for items in cash and in-person. Ideally in a public place with CCTV coverage."
🔒 "If you’re buying a car, check Carjam.co.nz to see if it’s stolen or if there’s money owed on it.”
A reminder: Suspicious activity can be reported on 105
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