What are the benefits of KiwiSaver

New Zealand has the smaller demographic problem

Because I wanted to make my dad plausible before emigrating why we were emigrating to New Zealand, I started doing a little more research and comparing Germany with New Zealand. One point in which New Zealand is in a much better position than Germany is its demography, i.e. the age structure of the population.

In New Zealand, too, employees are encouraged to provide for old age privately with Kiwisaver, but the small, non-contributory, state-guaranteed unit pension for all Kiwis is not really in danger. In the FBI Word Factbook, I compared graphical representations of the ages of the population of New Zealand and Germany.
A look at the New Zealand age pyramid shows that the Kiwis are not at all badly positioned when it comes to “aging society”. There are relatively many young people and children in New Zealand and the New Zealand age pyramid looks very trustworthy to me. In addition, countless relatively young immigrants come to the country every year, helping to balance the age pyramid.

In the German graphic, on the other hand, you can clearly see the fat age group of “baby boomers”. When this huge group of today's 50 to 65 year olds retire in the next 10 years, the German pension system will be shaken. Fewer and fewer employees then have to pay these many pensioners. Today it is too late to prevent this disaster, because far too few children have been born in Germany since the early 1980s.
In Germany, pension contributions will have to rise significantly over the next few years, or other taxes will be increased. Not such great prospects. That was one more reason for me to go to New Zealand.


Click to enlarge