Australia vs NZ - The Pension, Superannuation & KiwiSaver: What’s the Difference and What Should You Do?
- Cameron Steele
- Jan 21
- 4 min read
Updated: 5 days ago
If you’ve spent time working in Australia - or you’re thinking about moving back and forth - chances are you’ve heard people talk about “super” or “The Pension” and assume it’s basically the same thing as in NZ. On the surface, they do look similar.
But the same words mean different things between each country.
I see this confusion all the time - especially with people moving from Australia to New Zealand, or Kiwis returning home after years overseas. So let’s break it down clearly, without jargon, and focus on what actually matters for long-term financial outcomes.
When comparing Australia vs NZ pension systems, the biggest confusion comes from assuming the same terms mean the same thing in both countries.
Australia vs NZ Pension: What Superannuation Actually Means
This is where things get tricky straight away.
In New Zealand, when people talk about “superannuation”, they’re actually referring to NZ Super. This is more commonly known as “The Pension” This is a Government benefit, paid to eligible residents from age 65. Unlike most other advanced economies, NZ Super/The Pension is universal and everybody over the age of 65 gets it, unless they have lived abroad for a significant number of years.
It’s funded by current taxpayers and paid fortnightly. It’s not something individuals personally invest in.
In Australia the term used for a similar Government benefit is the "Age Pension".
It is means tested, which means receiving it is subject to income and asset tests, and its only available after the age of 67.
So what does Superannuation mean in Australia?
Australian superannuation is an investment scheme for individuals similar to KiwiSaver.
It is compulsory for anybody working in Australia, and is paid directly by employers.
How KiwiSaver Compares to Australian Super
If you’ve worked in Australia, this is usually the comparison people are actually trying to make.
Here are the key differences.
Contributions
In Australia, employer contributions to super are compulsory and currently much higher than KiwiSaver. They are all paid by your employer and sit at 12% as a minimum.
You can have multiple Providers. Its common for companies to have their preferred provider and new employers are usually put into these funds, despite having a fund (or several) elsewhere from their previous job(s).
For comparison, In NZ you can only have one Kiwisaver provider at any time (though it is easy to switch).
Its common for employers to pay more into an employees Super as there are tax advantages to do so. Workers in Oz often look at their remuneration for work as a total package - ie take home pay and Super together.
In New Zealand, KiwiSaver contributions are paid by different parties;
Employee contributions (currently 3%, going up to 3.5% in 1 April 2026, and 4% on 1 April 2028. These can be increased up to 10%)
Employer contributions (currently 3%, going up to 3.5% in 1 April 2026, and 4% on 1 April 2028). In theory employers can pay more too, but its not very common.
Government contributions (aka member tax credits)
Flexibility to change contribution rates or pause contributions if needed
Access and Flexibility
KiwiSaver includes a few features Australian super doesn’t:
First-home withdrawals
Contribution holidays
Greater control over fund switching and provider choice
That flexibility is useful – but it also makes it easier to set and forget, which is where problems often start.
Investment Responsibility
With KiwiSaver, individuals carry more responsibility for ensuring their KiwiSaver fund is appropriate.
When you first join KiwiSaver you are typically put into a default fund at random. These default options aren't designed to be optimal long term - it’s simply a starting point. Staying there for too long can quietly limit growth.
This is where many people lose money over time without realising it.
What Happens If You’ve Got Australian Super?
If you’ve worked in Australia, there may still be money sitting in an Aussie super fund. In fact, you might have money sitting in several funds! Unlike KiwiSaver, where you can only have one Provider, in Australia there is no limit. Its very common that people lose track of these!
In most cases, that balance can be transferred into a KiwiSaver account. There are rules around:
What portion can be transferred
How that money is labelled once inside KiwiSaver
Whether it can later be used for a first-home purchase (it can’t)
If any of your Super providers lose contact with you (new address, new email address etc), or your balance is under $6,000 AUD, they send the money to the ATO (Australian Tax Office). It smolders there in a low interest bearing account until YOU claim it from them!
That account at the ATO currently has over 5 BILLION dollars in it!!
If your Ozzy provider still has contact with you there process is slightly different with another set of paperwork.
A KiwiSaver adviser can help you with the paperwork to get your Ozzy balances transferred into your KiwiSaver. It literally paperwork with actual paper signed in wet ink mailed to paper to Australia. (This is 2026 for crying out loud!)
So What Should You Actually Do?
For people living in New Zealand, KiwiSaver is the main long-term investment NZ option most will use - alongside NZ Super later on.
But it only works well if:
The differences from Australian super are understood
KiwiSaver investments match the individual situation
Contributions are structured efficiently
For people moving between countries or returning from Australia, this is often where things fall through the cracks.
A Simple Next Step
If you’re unsure how a KiwiSaver account stacks up - or how it compares to money held in Australian super - the best place to start is understanding the current position.
That’s exactly what my KiwiSaver Knowledge Assessment is for. It doesn’t give answers or advice on its own - it simply gathers the right information before we sit down, so any guidance is relevant and personalised.
Simple Steps. Solid Results