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OECD recommends NZ overhaul pension system

Financial Standard

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May 18, 2026

New Zealand needs to reform its pension sector, increasing the age at which retirement savings can be accessed and no longer taxing those savings, according to the Organisation for Economic Co-operation and Development (OECD).

- Jamie Williamson

In its latest report on the state of New Zealand’s economy, the OECD said the nation’s ageing population is putting increasing pressure on its fiscal deficit and, without reforms, public debt will rise towards 200% of its gross domestic product.

As a result, it recommended New Zealand implement a combined public and private pension and NZ Super Fund reform under which public pension eligibility would be linked to life expectancy, with consideration for ethnic and occupational differences.

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