An aging population can put a strain on an economy. The more elderly people a country has, the more tax has to go towards superannuation. People often either put off saving until it’s too late, or underestimate the amount of money they will need to retire comfortably. The New Zealand government’s solution was to bring in Kiwisaver in 2007.
Kiwisaver is a voluntary government operated scheme where part of a person’s wage is invested every pay day until their retirement. When you start a job you will automatically be placed in Kiwisaver, but you are free to opt out. While in Kiwisaver your employer must also make contributions toward the balance. Once you reach retirement age (currently 65) you are eligible to withdraw your Kiwisaver balance (as long as you have been in Kiwisaver for 5 years already).