New Zealand Superannuation Fund

The New Zealand Superannuation Fund is a sovereign wealth fund that the New Zealand government established in response to the projected increase in the cost of funding New Zealand Superannuation (NZS), the retirement benefit paid to all eligible citizens age 65 and over. The government took this measure as a result of the country's aging population.

The New Zealand Superannuation Fund is a sovereign wealth fund, which is a type of state-owned investment fund. The fund is governed by a separate Crown entity called the Guardians of New Zealand Superannuation. A  board selected by New Zealand's Ministry of Finance oversees the Guardians of New Zealand Superannuation. The New Zealand Superannuation Fund is funded on a "pay as you go" basis, which means the cost of paying NZS in any given year is paid from the taxes levied on incomes of the working population in that year.

The government of New Zealand currently provides universal superannuation, which is effectively a government-sponsored pension plan. New Zealanders who have lived in the country for at least 10 years are eligible for NZ Super payments starting when they turn 65. An aging population poses a potential threat to this system, as the working population contributing funds to the superannuation program will shrink as the retired population relying on superannuation grows.

The fund's assets totaled $38.5 billion by June 2018, and its size is not projected to peak until the 2080s. The New Zealand government is not scheduled to make withdrawals from the fund until 2029-2030.

The government of New Zealand established the New Zealand Superannuation Fund in 2001, in response to concerns about an aging population.

By establishing this sovereign wealth fund, the government of New Zealand hoped to make future superannuation payments more affordable. Effectively, the New Zealand Superannuation Fund is a government savings vehicle that pre-funds the future costs of NZS. The mission of the fund is to maximize returns over the long term, without undue risk, so as to reduce the tax burden for future New Zealanders.

The New Zealand Superannuation Fund has made socially responsible investment one of its key principles. The fund considers environmental, social and governance issues when selecting investments. In 2016, the fund announced it was implementing a new climate change strategy. The fund attempts to make its portfolio more resilient to climate-related risk by reducing its exposure to fossil fuels and carbon emissions, among other strategies.