The exodus of New Zealanders to Australia is putting the spotlight on the differences in saving for retirement in the two countries, says business consultancy Mercer.
Australia's system encourages self-funded retirement, according to Mercer. This is because of the higher level of employer contributions and lower taxes oncontributions.
An Australian who earns $50,000 a year will have more retirement savings than a New Zealander earning the same amount over their lifetime.
"Employers, in both New Zealand and Australia, with employees on both sides of the Tasman should be aware of the differences between the two systems and what it all means for them and their workers," Paul Newfield, head of retirement, risk and finance at Mercer said.
The Australian investment tax system is much simpler for members to understand.
But New Zealand's KiwiSaver framework, which allows New Zealanders to have only one account, avoids lost accounts, consolidates retirement savings, and is simpler for employees to manage and understand.
It saves employees money by avoiding multiple administration fees.
"There is no doubt that New Zealand's single account framework where each KiwiSaver member has one account, delivers multiple benefits," said Newfield.
There is no income or assets test to access New Zealand's tax funded universal pension - New Zealand Superannuation. Australians must meet a range of criteria relating to age, income and assets to qualify for their age pension.
Overall, the New Zealand system was simpler to understand and easier for the Government to administer, said Newfield.
