Westpac NZ: Keep KiwiSaver Contributions for Over 65s
Westpac NZ is calling for more employers to make KiwiSaver contributions for employees aged 65 and over and says the Government should consider making it compulsory.
Nigel Jackson, Chief Executive BT Funds Management (NZ) Ltd, Westpac NZ’s KiwiSaver Scheme provider, says while it makes sense for Government contributions to end at 65, given older New Zealanders receive superannuation payments from this age, continuing employer contributions could make a meaningful difference to people’s retirement savings.
“Over the past three years, 54% of our KiwiSaver customers aged 65 and over have continued to make contributions to their accounts – but just one-third of this age group have received employer contributions in that time,” Mr Jackson says.
“We know New Zealanders are increasingly working past 65, but employers aren’t currently required to continue to make contributions for employees in this age bracket if they’ve been a KiwiSaver member for at least five years.”
According to the 2023 census, 24.1% of adults aged 65 and over were employed in part-time or full-time work – a 2% jump on the 2013 figures.
“With close to a quarter of our population aged over 65 still working, in many cases because they simply can’t afford to retire, there’s an opportunity to support these people with their savings,” Mr Jackson says.
“Continuing employer contributions would boost people’s KiwiSaver balances in those critical last years of working.
“We know New Zealanders are worried they’re not saving enough for retirement and while we’re pleased that the default KiwiSaver contribution rate is increasing to 4% for both employees and employers from 2028, we think there’s an opportunity to do more.
“We also think there is a fairness element. Workers over 65 doing the same work as younger workers should get the same benefits.”
According to Stats NZ, 7% of the labour force was aged 65+ in 2024. Stats NZ’s labour force projections suggest that figure will increase to between 7 and 11 per cent by 2051.*
Recent Westpac customer research highlighted that saving enough for retirement is something Kiwis are worried about, with more than 60% saying they don’t think Kiwis are saving enough.
Of those surveyed, 70% also felt KiwiSaver should be compulsory, and 68% believed employers should increase their contribution rates.
National labour force projections: 2024(base)-2078 | Stats NZ
https://www.westpac.co.nz/about-us/media/westpac-nz-says-employers-should-continue-kiwisaver-contributions-for-over-65s/