Turning now to the National Party announcement that they will campaign on lifting kiwisaver contributions – but the korero out there amongst the electorate is will the retirement age also lift. In Australia the retirement age is 67. Many Māori in New Zealand face significant barriers to building strong retirement savings, contributing to a riskier financial picture in older age. A number of structural, economic, and social factors help explain why on average Māori have lower retirement savings compared to non-Māori.
Key Challenges
- Income Gaps
Māori on average earn less than non-Māori, which limits their capacity to save for retirement. Lower earnings mean smaller KiwiSaver contributions over time, reducing the compounding effect that builds balances. - KiwiSaver Contribution Disparities
While many Māori are enrolled in KiwiSaver (around 82% according to some data), they are more likely than others to stop or suspend their contributions. In addition, research shows Māori and Pacific peoples contribute, on average, around NZ$1,500 less per year into KiwiSaver compared with European New Zealanders. - Lower Savings Buffers
According to the Retirement Commission’s savings tracker, only about 50% of Māori have a $1,000 “emergency” savings buffer -considerably lower than the 69% average for the total population. Without a safety net, people may be more vulnerable to crises that force them to divert money away from long-term saving. - Perceptions of KiwiSaver
Data from Te Ara Ahunga Ora (the Retirement Commission) suggests Māori are among the least likely groups to believe strongly in the value of KiwiSaver for retirement. This may affect motivation to contribute consistently or at higher levels. - Life Expectancy and Health Disparities
Structural health inequities mean many Māori have lower life expectancy and higher disease burden. This worsens the retirement savings challenge: retiring later may not always be realistic, but saving less means retirement income is more precarious.
Joining Matthew Tukaki for a korero is Auckland University Professor Robert MacCulloch
