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Working paper

KiwiSaver and the Accumulation of Net Wealth (WP 14/22)

Issue date: 
Tuesday, 18 November 2014
Status: 
Current
View point: 
Document Date: 
Publication category: 
JEL classification: 
E21 - Macroeconomics: Consumption; Saving; Wealth
J26 - Retirement; Retirement Policies
ISBN: 
978-0-478-43605-1

Formats and related files

The objective of this paper is to analyse the extent to which membership of KiwiSaver has been associated with greater accumulations of net wealth.

Abstract

The objective of this paper is to analyse the extent to which membership of KiwiSaver has been associated with greater accumulations of net wealth. The paper utilises two linked sources of data which cover the period 2002 to 2010: Statistics New Zealand's Survey of Family, Income and Employment and Inland Revenue Department administrative data on KiwiSaver membership. Two approaches are employed: difference-in-differences (where the outcomes of interest are changes in net wealth) and various panel regression techniques. Results appear consistent with earlier evaluations of KiwiSaver. Neither approach suggests KiwiSaver membership has been associated with any positive effect on net wealth accumulation.

Acknowledgements

The authors acknowledge the contribution of the Inland Revenue Department and Statistics New Zealand in generating and making available a confidentialised linked data set on which the analyses in this paper is based. We also wish to thank our reviewers, Murat Genc, John Gibson, Mark Vink and Kristie Carter for their helpful comments and suggestions, as well as our editor, John Creedy.

Disclaimer

The views, opinions, findings, and conclusions or recommendations expressed in this Working Paper are strictly those of the author(s). They do not necessarily reflect the views of the New Zealand Treasury or the New Zealand Government. The New Zealand Treasury and the New Zealand Government take no responsibility for any errors or omissions in, or for the correctness of, the information contained in these working papers. The paper is presented not as policy, but with a view to inform and stimulate wider debate.

Last updated: 
Tuesday, 27 October 2015