Annex 4 — Contributions to the NZSF
Annual capital contributions to the NZSF are calculated in accordance with the formula in section 43 of the New Zealand Superannuation and Retirement Income (NZSRI) Act 2001. This formula automatically adjusts capital contributions each year, based on the latest forecasts, to support the funding of aggregate net (of tax) NZ Superannuation payments over the next 40 years. Forecasts of these contributions are shown in Table A4.1.
Forecast contributions have increased since last year's Budget because of revised population projections and higher inflation, which have increased the future cost of NZ Superannuation as a share of GDP. Forecast contributions have also increased because the Guardians of New Zealand Superannuation have lowered their long-run expected return assumption, reflecting their view that with global equity markets at historically high levels, future returns will likely be weaker compared to recent years. With lower expected investment returns, there will be fewer funds available in the NZSF to cover NZ Superannuation payments in future, so the legislative formula prescribes greater contributions to the NZSF to make up for this.
Table A4.1 — NZSF contributions
| Year ending 30 June $millions |
2026 Forecast |
2027 Forecast |
2028 Forecast |
2029 Forecast |
2030 Forecast |
|---|---|---|---|---|---|
| NZSF contributions — prescribed by formula | 61 | 562 | 600 | 893 | 1,049 |
| NZSF contributions — BEFU 2026 | 0 | 562 | 600 | 893 | 1,049 |
Source: The Treasury
The Government will make annual capital contributions to the NZSF in line with the section 43 formula, except in the current fiscal year, when the $61 million contribution prescribed by the formula, together with $39 million from the Budget 2025 capital allowance, was invested in the Elevate NZ Venture Fund.
Elevate is administered by the Guardians of New Zealand Superannuation under a second mandate in the NZSRI Act and supports the development of early-stage capital markets in New Zealand. The Government's intention is that realisations from Elevate's investments will ultimately be used to fund NZ Superannuation.