The Politics of Superannuation in Australasia: Saving the New Zealand Standard of Living

Support for retired individuals is one of the key policy issues facing governments throughout the OECD. The need for a long-term approach to the issue of retirement saving is well established. New Zealand and Australia have adopted different approaches to retirement saving. Two primary differences exist in retirement saving policy - New Zealand offers little in the way of incentives and there is no compulsion; conversely, Australia provides highly concessionary tax incentives and a mandatory occupational retirement savings scheme exists. This paper offers suggestions on how and why two countries that typically approach policy issues from a similar direction have adopted such different attitudes to the topic of retirement saving.