Global Daily Tax News, New Zealand Urged To Instead Tax Pension Withdrawals, (May 13, 2026)

The OECD has recommended that New Zealand gradually shift taxation from pension contributions and returns to withdrawals, to boost private pension accumulation, in its newly released Economic Survey report for the nation.

The report says a pension reform package is urgently needed. Reforming public pension settings by linking the eligibility age to life expectancy would put spending on a more sustainable path, the report says.

The OECD has said the Government should continue to raise default contributions to KiwiSaver, New Zealand's voluntary and privately managed savings scheme, to raise retirement income adequacy from current low levels.

Other tax recommendations in the report include that New Zealand should introduce tax breaks to encourage small firms to undertake initial public offerings (IPOs) and impose a 50 percent windfall tax on capital gains from land rezoning.