Govt's own Savings Group criticises KiwiSaver plan

Email
Print

Wed, 19 Oct 2011 6:17p.m.

Now the focus is on what the other main political party's plan is for KiwiSaver

Now the focus is on what the other main political party's plan is for KiwiSaver

By Rebecca Wright

The National Government's latest plan to change KiwiSaver, and eventually automatically enroll all workers, has had a cool reception from industry commentators.

Now the focus is on what the other main political party's plan is for KiwiSaver.

Like 1.8 million Kiwis, Tia Faaselele is a member of KiwiSaver and has been since the scheme began, his message to the politicians is simple:

“Leave it the way it is - don't touch it.”

But changes to KiwiSaver are central policy for the major parties in this election campaign.

National says it will auto-enroll 550,000 eligible workers but not until its books are back in the black - thought to be around 2014.

Paul Mersi from the Government’s own Savings Working Group says National could have been bolder by taking up its recommendation to adjust the $1000 kick start payment.

“Spread out the payments, so the Government is not putting $1000 in your account today but spreading it over five years or longer.”

Then, Mr Mersi argues, auto enrolment could have been brought forward.

But the Prime Minister disagrees.

“If we are going to encourage them to stay in, because you've got to remember they can opt out, probably needs to be some sort of sweetener there,” says John Key.

David Ireland from Workplace Savings says the key to growing KiwiSaver is increasing members’ contributions.

“Increasing the contribution rates, I think, is really important [in] actually getting people to save a meaningful level towards their retirement.”

So it was a cool reception today to National’s plan. Labour looks set to take a tougher line than National on compulsion and there have been hints it may well take up the Savings Group recommendation to stagger the $1000 kick start payment.

The question is - will it be well received by voters.

3 News

Become a fan of 3 News on Facebook and on Twitter.

Post a Comment

Before commenting, please take the time to read our moderation guide


(Won't be published)



Comments

27 Oct 2011 09:14a.m.

Gary wrote:

NZ copying Australia's successful scheme would result in "meaningful" savings.

20 Oct 2011 09:50p.m.

TrojanAnimal wrote:

UN Agenda 21 Public Private partnerships to Destroy Countries Thanks John Stooge Key.

20 Oct 2011 09:44a.m.

Dan wrote:

Frankly both parties are unfit to hold the chair. We need a fresh look by a new party which actually means to do something positive for the country and it citizens. Not just rhetoric.

19 Oct 2011 09:08p.m.

rev macdonald wrote:

national have ruined anything labour did for sheer
political spite. they should have left kiwisaver alone as it worked well ,was popular in the finace sector and savings is what we need. labour had it right when they introduced it but key attacked it the moment he got in.
the cullen fund another major success by labour was stopped
by key and payments to the scheme frozen. the downdrade national got as a gov't could have been avoided had they left well alone. national have been poor decision makers.

19 Oct 2011 08:44p.m.

eddie wrote:

Ohhh Clarke...who's actually listening to your posts, bile and rhetoric?...labour slip, national gain in polls each month...but no matter as you think all polls are crap and labour will win next month (cough, *snigger* cough)....but that aside Clarke, labour under Clark signed off over a dozen mining permits in NZ (quietly I might add), so labour allowing mining was good and National allowing mining is only bad, as it's national? lol....ok, another one for you...Silent T and Goof have on record stated they would borrow MORE than national have, indeed Silent T has said over $2 billion by 2014, so you saying labours borrowing is good and nationals is bad...hmmm, funny that!

19 Oct 2011 07:09p.m.

Clarke wrote:

Thats because National remains clueless when it comes to the economy. National was brought off by Big Oil and the Mining corporations before the 2008 election.. these meetings have been confirmed by John Key. In return for the support of these corporations National conveniently lost the Underground mining report, and conveniently forgot to sign the Bunker accord which labour intended to do in July 2009... as it was pointless signing it before Nove,ber 28th 2008 as it was not internationally recognised and enforceable until that time. Nationals plan was to lower tax's for the wealthy to feed the greed of the top 1 percent. Then their plan was to sell state assets to take a little breather from debt repayment... but other than that Key has no plans to fix or improve the economy.