Join the Kiwis who are hatching their tomorrow and have invested more than $2 billion with Hatch.
Are you one of the 3.4 million people enrolled in KiwiSaver? From 1 April, the minimum KiwiSaver contribution rate will go from 3% to 3.5% for both employees and employers. Half a percent may seem like no big deal, but incremental increases compound over time, and that can be a BFD. The Government is increasing the rate partly because of our ageing population, and long term fiscal pressure. Currently around 83% of Hatch investors are working-age, take a look at how our investor demographics have changed over time:
Whether you’re retired, FIRE’d, or you're mid-way through a mince & cheese reading this on your smoko break, the reason behind the KiwiSaver changes can still have an impact on you.
We’re gettin’ old. 🧓 The number of Kiwis over 65 is growing, while the working age population is shrinking. This impacts our ‘dependency ratio’, which helps determine how financially stretched a country becomes over time. Right now there are four working age New Zealanders for every person over 65, but by 2065 that’s projected to be just two to one. In short: more retirees, fewer workers (and people working for longer), higher costs, and increasing pressure to rethink how we fund retirement and public services.
Why should investors care right now, even if retirement feels miles away? Here’s why that change matters, and what it could signal about the investment landscape ahead.
Older populations consume differently. As we age, our spending moves away from growth‑oriented categories; tech (hello Meta glasses 👓), travel, and durable goods, like cars, whiteware, and furniture. When we’re old we’ll be funding hip and knee replacements, 🦿 paying utilities, and everyday essentials. With an ageing population, these consumer shifts could drive long‑term divergence in sector performance. A recent paper from the International Monetary Fund studying Demographics and Consumption in Asia models how this could play out. If demographics shape economies, and economies shape markets, then investors need to pay attention.
The takeaway: You can’t control the ageing population 💔 (Bumble BMBL, little help here?) but you can control how prepared you are for your future.
We’re not financial advisors and Hatch news is for your information only. However dazzling our writing, none of it is a recommendation to invest in any of the companies or funds mentioned. If you want support before making any investment decisions, consider seeking financial advice from a licensed provider. We’ve done our best to ensure all information is current when we pushed ‘publish’ on this article. And of course, with investing, your money isn’t guaranteed to grow and there’s always a risk you might lose money.
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