What if the tax you pay didn’t go to the government, but straight into your own savings?

That’s the bold idea being floated by University of Auckland economics professor Robert MacCulloch and former Finance Minister Sir Roger Douglas.

Their updated proposal suggests shifting income tax on earnings up to $60,000 into personal savings accounts to fund each person’s healthcare, pension, and insurance cover.

Under their plan, Kiwis would save around $21,000 annually across three separate accounts.

The government would still act as a safety net, covering those unable to fund their own care.

“With nearly 1 in 4 New Zealanders set to be over 65 by 2060, the public system just isn’t sustainable,” the pair argue.

The current model relies heavily on public spending, while their proposal leverages the power of compound interest to future-proof individual wellbeing.

MacCulloch says the shift could give working Kiwis more choice, competition, and ultimately better results from healthcare and retirement services, without increasing overall costs.

This matters for Coasties too.

Many here are self-employed or running small businesses and often feel let down by the one-size-fits-all public system.

Professor Robert MacCulloch holds the Matthew S. Abel Chair of Macroeconomics at the University of Auckland Business School.

A savings-based approach could give locals more control over their future, especially in an area with an ageing population and growing health needs.

Of course, it's a provocative idea.

But with growing costs and a ticking demographic clock, MacCulloch says bold thinking is no longer optional.