Contributions to the New Zealand Superannuation Fund
The Government's contributions to the NZSF are projected to increase its size to $85.6 billion by 2026. This will help NZSF to achieve its primary role of smoothing the cost of superannuation payments in the face of demographic pressures and easing the burden on future generations of taxpayers to meet the increased costs of New Zealand Superannuation. The calibration of the OBEGAL fiscal rule factors in an allowance for contributions to the NZSF to ensure that this contribution does not add to the net debt to GDP ratio over time.
Table 7 sets out the contributions to the NZSF over the forecast period. From 2023 onwards, the estimated contribution to the NZSF is based on the legislated contribution formula in the New Zealand Superannuation and Retirement Income Act 2001. In 2022 the government is contributing more than is required by this formula. Over the next five years, the Government's contribution to the NZSF is forecast to be $10.9 billion in total.
Table 7 - Contributions to the NZSF
| Year ending 30 June $billions |
2022 Forecast |
2023 Forecast |
2024 Forecast |
2025 Forecast |
2026 Forecast |
|---|---|---|---|---|---|
| NZSF contributions | 2.4 | 2.6 | 2.1 | 1.9 | 1.9 |
Source: The Treasury