There are more than 400,000 self-employed Kiwi across Aotearoa’s workforce - and when it comes to saving for retirement, they’re falling behind.
A new report from Hnry and Te Ara Ahunga Ora Retirement Commission, Improving the retirement savings of the self-employed, shows just how wide the gap has become between employees and sole traders.
Unlike employees, who are automatically enrolled in KiwiSaver and receive employer contributions, the self-employed are left to themselves - and the numbers are polarising:
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Only 44% of self-employed people contribute to KiwiSaver, compared to 78% of employees.
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Sole traders who do contribute put in an average of just 2.6% of their income – and without employer top-ups, that’s less than half of what employees contribute.
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Almost one in five sole traders aren’t saving anything at all for retirement.
To add insult to injury, from July 2025 the maximum Government contribution to KiwiSaver was cut in half – from $521.43 to just $260.72 a year. For sole traders, who don’t get employer top-ups, this change is a direct hit to their retirement savings.
Many sole traders only put money into KiwiSaver when they feel financially secure, creating a stop–start pattern. That reactive behaviour reduces the benefits of compounding and leaves them under-saving during their peak earning years.
Irregular income patterns and financial strain also make it hard for sole traders to save, but the bigger issue is structural - with no auto-enrolment, no employer contributions, and now reduced government incentives, the current system simply isn’t set up to support self-employed New Zealanders. Unless there’s a shift at a governmental level, even fewer sole traders will see KiwiSaver as worthwhile.
Why this matters
If nothing changes, tens of thousands of self-employed Kiwi could reach retirement with little more than NZ Super to rely on. That risks widening inequities, fuelling financial stress, and ultimately putting greater strain on the public system.
What we’re doing at Hnry
At Hnry, we believe the system should work for everyone - not just for those in traditional employment. That’s why we’ve built in the option for automated KiwiSaver contributions directly into the Hnry service, letting sole traders set aside a percentage of their income as they earn.
Earlier this year, we also put our money where our mouth is: through the Hnry KiwiSaver Giveback, we topped up the KiwiSaver accounts of 500 randomly selected sole traders - making sure at least some of our community didn’t miss out on long-term savings.
Sole traders are vital to our economy, and they should be treated like it.
What needs to change
The report highlights that small tweaks to policy could make a big difference - things like flexible, income-based contribution models, smarter incentives for lower-income sole traders, and more education on the benefits of KiwiSaver.
New Zealand can’t afford to leave sole traders behind when it comes to retirement. Together with the Retirement Commission, we’ll keep pushing for solutions that support financial security for everyone, no matter how they earn their income.
This research has sparked widespread national attention, with coverage across:
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