An ageing population not saving fast enough for its retirement has been called a “timebomb” and a looming crisis, with many New Zealanders facing the prospect of hard times when they stop earning.

So, NZ First leader Winston Peters was on the money at his party’s recent annual conference when he pitched a major KiwiSaver overhaul. Under the plan, membership would become compulsory and minimum contributions from both employees and employers would increase to 8% of income, rising to 10% later.

To soften the hit to pay packets and business costs, Peters suggested tax cuts for KiwiSaver members and employers. These proposals go well beyond the already budgeted increases to minimum KiwiSaver contributions from 3% to 3.5% in April 2026, and 4% in April 2028.

But while there are good arguments for boosting KiwiSaver, there is a better option: increasing government contributions to the New Zealand Superannuation Fund (or Super Fund) – already a very well performing fund by world standards.

New Zealand saves for future pensions in two distinct ways: KiwiSaver, the voluntary retirement........

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