For the first time in nine years, the New Zealand Superannuation Fund has received a deposit from the Government.
Prime Minister Jacinda Ardern and Finance Minister Grant Robertson transferred $71m into the fund at Treasury this morning.
It's the first of seven $71m payments which will be made each month until the end of the current financial year, totalling nearly $500m.
Contributions will increase over the next four years, with $1b planned for the fund in 2019, $1.5b in 2020 and $2.2b in 2021.
Mr Robertson says while the Government will have to borrow money to restart contributions, the return on investment makes it worthwhile.
"It's an investment in the future. Where you have debt that's about planning for the future, that's actually a good investment," he says.
The fund was launched in 2001 by Labour Finance Minister Sir Michael Cullen as a way to pay for the future demands of universal superannuation. Withdrawals aren't permitted until 2020.
The previous National-led Government stopped contributions to the fund in 2009, seeing it as unnecessary borrowing following the Global Financial Crisis.
The fund has an average return rate of around 10 percent, and is currently worth $36b, which grew from just $14b of Government contributions between 2001-2008.
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