Process, collaboration and innovation: Insights into the 2025 Review of Retirement Income Policies

Te Ara Ahunga Ora Retirement Commission’s 2025 Review of Retirement Income Policies is out today – and it’s calling for bold changes to KiwiSaver to make the system work better for everyone. David Callanan, General Manager Corporate Trustee Services, shares the key insights.

New Zealand’s retirement income system has strong foundations, but the ground is shifting. We’re living longer, working differently, and facing new financial pressures like housing and caregiving demands. Today, low-income earners, migrants and women face the most challenges when it comes to retirement savings inequality, with the gender pay gap and ‘motherhood penalty’ significantly impacting financial outcomes for women in retirement.

KiwiSaver has been a game-changer since it was introduced in 2007, but it needs to evolve to keep pace. 

Here’s what’s got my attention from the report.

Process matters
If you’ve ever tried to help a client through a hardship withdrawal, you know improving administrative processes is a practical priority. Hardship withdrawals are rising, driven by cost-of-living pressures. While only a small percentage tap into their funds early, the long-term impact on retirement balances is significant. 

The review calls for standardisation and simplification – steps we can take now to make it easier for people, especially those with complex needs, to access help when they need it. 

As New Zealand’s largest KiwiSaver supervisor, we’re on the frontline of this and fully back this call for action. 

Innovation for impact
The Retirement Commission urges providers to innovate: flexible drawdown options, emergency savings accounts and digital tools that meet savers where they are. Remembering for some, retirement can be 30-plus years. 

As the report notes, here at Public Trust, we’re developing a new system to streamline hardship withdrawals. This will improve outcomes for members and providers, and help deliver richer data insights to inform future policy. 

Collaboration counts
Industry collaboration matters more than ever. The report calls for providers, supervisors and government to work together to maintain public trust, respond to demographic shifts and support ethical investment choices. 

The Review’s push for a 10-year roadmap is about future foresight, not short-term fixes. So, add improved governance and policy development to our list of must-dos. 

The bottom line? KiwiSaver remains a cornerstone of financial security in New Zealand. To keep it that way, we need stronger systems, smarter innovation and industry-wide collaboration to deliver the best possible outcomes for New Zealanders now and into the future.