New Zealand has a simple, very successful pension system that could serve as a model for other countries. Unfortunately, despite its simplicity, few understand how the system works. The Government of Ireland, which is reforming its system, is an example of this misunderstanding, Susan St John points out.
New Zealand recently added an auto-enrolment, voluntary savings scheme, known as KiwiSaver, to its pension system. KiwiSaver has many shortcomings, is fiscally costly, and and is considered by many to be unnecessary since nearly all residents of New Zealand are guaranteed a basic old-age pension for life. (more…)