Sub-optimal contributions all round

This compares to Australia where the employer contribution is guaranteed at 11%.

Meanwhile, on the employee side, the average contribution rate for the 12 months from June 2022 to 2023, was 4.3% according to the report - significantly lower than National Capital’s optimal index of 6.3%.

This doesn't bode well for the retirement prospects of New Zealanders, says the report, leaving most 65-year olds $142,000 short of the lump sum they would need for a normal weekly income in retirement.

The news was slightly more positive for National Capital’s KiwiSaver Allocation Index which measures how KiwiSaver members are invested. This rose three points to 58, representing a potential total gain of $48 billion in earnings, but again is below National Capital’s optimal index of 68.8.