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Lessons from across the Tasman: Comparing the Australian and New Zealand retirement income systems

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  • Adrian Katz

    (New Zealand Institute of Economic Research)

Abstract

Comparing Australia and New Zealand can provide useful lessons in many areas, and retirement income policy is no different. Since 1992, Australia has operated a compulsory savings scheme along with a means-tested government-funded pension to address pensioner poverty. In contrast, New Zealand's system consists of NZ Super – a universal public pension – and KiwiSaver – a voluntary savings scheme introduced in 2007. In our latest Public Good working paper, supported by Te Ara Ahunga Ora Retirement Commission, we compare the two systems and assess them against five key criteria. While both systems have their strengths and weaknesses, the comparison offers important lessons for New Zealand.

Suggested Citation

  • Adrian Katz, 2024. "Lessons from across the Tasman: Comparing the Australian and New Zealand retirement income systems," NZIER Working Paper 2024/1, New Zealand Institute of Economic Research.
    • Handle: RePEc:ris:nzierw:2024_001
    as

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    File URL: https://www.nzier.org.nz/hubfs/Lessons%20from%20the%20Australian%20retirement%20income%20system%20NZIER%20WP%202024-01.pdf
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    References listed on IDEAS

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    1. David Law & Lisa Meehan & Grant M. Scobie, 2017. "KiwiSaver: an evaluation of a new retirement savings scheme," New Zealand Economic Papers, Taylor & Francis Journals, vol. 51(3), pages 262-280, September.
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    3. Kadir Atalay & Garry F. Barrett, 2015. "The Impact of Age Pension Eligibility Age on Retirement and Program Dependence: Evidence from an Australian Experiment," The Review of Economics and Statistics, MIT Press, vol. 97(1), pages 71-87, March.
    4. Jiancai Pi & Zixin Li, 2024. "Relative performance evaluation and wage inequality," Manchester School, University of Manchester, vol. 92(3), pages 296-312, June.
    5. Ellis Connolly & Marion Kohler, 2004. "The Impact of Superannuation on Household Saving," RBA Research Discussion Papers rdp2004-01, Reserve Bank of Australia.
    6. Summers, Lawrence H, 1989. "Some Simple Economics of Mandated Benefits," American Economic Review, American Economic Association, vol. 79(2), pages 177-183, May.
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    More about this item

    Keywords

    retirement schemes; pensions; New Zealand; Australia;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General

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