Fiscal Strategy
Report 2025

Annex 3 – Contributions to the New Zealand Superannuation Fund

Annual capital contributions to the New Zealand Superannuation Fund (NZSF) are calculated in accordance with the formula in section 43 of the New Zealand Superannuation and Retirement Income Act 2001 (NZSRI Act). This formula automatically adjusts capital contributions each year, based on the latest forecasts, to support the funding of aggregate net (of tax) NZ Superannuation payments over the next 40 years. Forecasts of these contributions are shown below.

Year ending 30 June
$millions
2025
Forecast
2026
Forecast
2027
Forecast
2028
Forecast
2029
Forecast
NZSF contributions - prescribed by formula 879 61 4 -32 63
NZSF contributions - BEFU 2025 879 0 4 -32 63

Source: The Treasury

The Government will make annual capital contributions to the NZSF in line with the section 43 formula, except in 2025/26. In that year, the $61 million contribution prescribed by the formula, together with $39 million from the Budget 2025 capital allowance, will be invested in the Elevate NZ Venture Fund. This is not a new approach - $240 million was diverted from NZSF contributions to the New Zealand Venture Investment Fund (later relaunched as Elevate) in Budget 2019.

Elevate is administered by the Guardians of New Zealand Superannuation under a second mandate in the NZSRI Act and supports the development of early-stage capital markets in New Zealand. The Government's intention is that realisations from Elevate's investments will ultimately be used to fund NZ Superannuation.

The NZSF's forecast investment returns, coupled with forecast contributions, are expected to increase the total fund size of the NZSF to $104 billion by 2028/29. As the time is approaching when the NZSF's assets are high enough to ensure that withdrawals, rather than contributions, are the normal outcome, movements in both NZ Superannuation and GDP forecasts can result in a forecast withdrawal in a single year - as is currently expected in 2027/28 - before returning to a forecast contribution in the following year.

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