Contributions to the New Zealand Superannuation Fund
The combination of the Government's contributions to the NZSF and the NZSF's earnings are projected to increase its size to $85 billion by 2027. Growing the size of the NZSF will help it 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 the New Zealand Superannuation. The calibration of the OBEGAL fiscal rule factors in an allowance for contributions to the NZSF to ensure NZSF contributions do not add to the level of net debt to GDP over time.
Table 6 sets out the contributions to the NZSF over the forecast period. The estimated amount of the annual capital contribution to the NZSF is calculated in accordance with the formula in section 43 of the New Zealand Superannuation and Retirement Income Act 2001. Over the next five years, the Government's contribution to the NZSF is forecast to be $8.6 billion in total.[15]
Table 6 – Contributions to the NZSF
| Year ending 30 June $billions |
2023 Forecast |
2024 Forecast |
2025 Forecast |
2026 Forecast |
2027 Forecast |
|---|---|---|---|---|---|
| NZSF contributions | 2.6 | 1.6 | 1.5 | 1.6 | 1.4 |
Source: The Treasury
Notes
- [15] Table does not sum to this figure due to rounding.