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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Neighbourhood Challenge: Who Can Crack This One? ⛓️💥❔
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Poll: 🗑️ Would you be keen to switch to a fortnightly rubbish collection, or do you prefer things as they are?
Aucklanders, our weekly rubbish collections are staying after councillors voted to scrap a proposed trial of fortnightly pick-ups.
We want to hear from you: would you be keen to switch to a fortnightly rubbish collection, or do you prefer things as they are?
Keen for the details? Read up about the scrapped collection trial here.
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83.9% Same!
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16.1% Would have liked to try something different
7 tips for buying your Christmas ham
It’s the centerpiece of the Christmas table, so when you’re peering into the supermarket chiller or ordering from the butcher, choosing the perfect ham can feel like a daunting task.
Here are some things to keep in mind when choosing one to bring home with you.
1. What type of ham to buy
You’ve got some decisions to make when it comes to the type of Christmas ham you’re going to buy.
Cooked on the bone (COB) ham is the traditional Christmas ham. If you’re buying a half ham, you’ll have the choice of the shank or fillet end. The shank is the part with the bone sticking out that gives the ham that traditional look. The fillet end is the round part that gives more meat. If you’re deciding whether to get a whole ham or half, consider how quickly you’ll be able to eat it all. You only have about a week to eat an opened ham before it will go off, so it can be a good idea to get two halves. That way you can eat one half during the week of Christmas and save the other for January.
Champagne ham has had the bone removed and only has the hock left on, so it’s easier to carve.
Pressed ham – also known as continental ham – has had the bones removed and has been pressed, so it’s also easy to carve.
2. Check the pork percentage
The label on a packaged ham will say what percentage is actually meat. Hams are injected with brine, to keep them moist, and additives. The brine injection level for manufactured hams is usually between 10% and 35% of the ham's weight. A manufacturer that wants to produce a cheap ham will add more water to bump up the weight.
3. Know how to tell if it’s New Zealand pork
By far, most of the hams bought in New Zealand this Christmas will be from pigs reared overseas. New Zealand imports pork from about 25 countries. It’s frustrating for New Zealand pig farmers because this ham can come from farms that don’t have to meet the same animal welfare standards as we have in this country. As a result, overseas meat is often cheaper.
If buying New Zealand pork is important to you, look for:
words on the packaging like ‘New Zealand pork’ or ‘born and raised in New Zealand’
4. Have a good look at the ham
If you’re going to be glazing your ham, look for one that is covered in a finger-thick layer of fat. This will give you the thickness you need to make good score lines.
New Zealand Pork’s website also advises looking for a ham that has a meaty texture rather than one that looks wet or rubbery. It says the ham’s skin should be smooth with even colouring. “If the knuckle is sunken, it may be overcooked. If the rind is buckled or uneven, it may be a sign of dryness.”
5. Ask a lot of questions
If you’re ordering your pork from a butcher, you probably won’t be able to compare hams like you would at the supermarket. So, make sure you ask lots of questions, now that you know what you’re looking for.
You could ask:
Is the ham made from New Zealand born and farmed pork?
What will be its injection percentage?
What flavours will it have?
You could even ask if there’s a glaze the butcher thinks would work particularly well with those flavours.
6. Know what size you’ll need
If the ham is the only meat on your Christmas menu, New Zealand Pork advises allowing 1kg of ham for five people. Or if you’ve got other meat options, 1kg will feed about six to eight people.
7. Know the best hams in New Zealand
The best hams of the year were awarded at the 100% New Zealand Bacon & Ham Awards earlier in the year so you can check out which ones got medals. Some of them are only available in the city the butcher is based, but a Farmland boneless ham available nationwide won a gold award and Woolworths bone-in and boneless hams picked up bronze.
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