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Are Kiwis saving enough for retirement? Evidence from SOFIE

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Listed:
  • Trinh Le
  • Grant Scobie
  • John Gibson

Abstract

The extent to which people are saving for retirement is a key element in formulating public policy toward saving and retirement incomes. This paper adopts a life cycle model of wealth accumulation to estimate the saving rates that people would need in order to have an adequate income in retirement. Based on data from the Survey of Family, Income and Employment, we found that most of the population aged 45-64 has made adequate provision, especially among the lower income groups where New Zealand Superannuation represents the majority of their retirement income.

Suggested Citation

  • Trinh Le & Grant Scobie & John Gibson, 2009. "Are Kiwis saving enough for retirement? Evidence from SOFIE," New Zealand Economic Papers, Taylor & Francis Journals, vol. 43(1), pages 3-19.
    • Handle: RePEc:taf:nzecpp:v:43:y:2009:i:1:p:3-19
    DOI: 10.1080/00779950902803951
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    References listed on IDEAS

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    Cited by:

    1. Kirsten L. MacDonald & Robert J. Bianchi & Michael E. Drew, 2020. "Equity risk versus retirement adequacy: asset allocation solutions for KiwiSaver," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 60(4), pages 3851-3873, December.
    2. Le, Trinh, 2007. "Does New Zealand have a household saving crisis?," NZIER Working Paper 2007/1, New Zealand Institute of Economic Research.
    3. Littlewood, Michael, 2014. "Ageing populations, retirement incomes and public policy: what really matters," MPRA Paper 56232, University Library of Munich, Germany.
    4. Grant Scobie & Trinh Le & John Gibson, 2007. "Housing in the Household Portfolio and Implications for Retirement Saving: Some Initial Finding from SOFIE," Treasury Working Paper Series 07/04, New Zealand Treasury.
    5. David Law & Grant M. Scobie, 2018. "KiwiSaver and the accumulation of net wealth," New Zealand Economic Papers, Taylor & Francis Journals, vol. 52(1), pages 1-20, January.
    6. Trinh Le & John Gibson & Steven Stillman, 2010. "Household Wealth and Saving in New Zealand: Evidence from the Longitudinal Survey of Family, Income and Employment," Working Papers 10_06, Motu Economic and Public Policy Research.
    7. Grant M. Scobie & Katherine Henderson, 2009. "Saving Rates of New Zealanders: A Net Wealth Approach," Treasury Working Paper Series 09/04, New Zealand Treasury.
    8. Anne-Marie Brook, 2014. "Options to Narrow New Zealand’s Saving – Investment Imbalance," Treasury Working Paper Series 14/17, New Zealand Treasury.

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