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Survey shows criticism over KiwiSaver changes

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Megan Alexander

Megan Alexander

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Thu, 16 Apr 2009 12:00a.m.
A new survey on KiwiSaver shows many think the government's changes have made it less attractive, but not many will actually reduce their level of contributions.
Two thirds of those already in KiwiSaver do not intend to vary their contribution to the lower minimum level of 2 percent, which was effective from April 1, according to AMP.
 
Of the 23 percent likely to reduce their contribution, a quarter will save the money elsewhere, 13 percent will use it to pay off debt and less than half will use the extra 2 percent to cover increased living costs.
 
Under changes it announced before the election, the Government lowered contributions to KiwiSaver to 2 percent of the weekly wage.
 
Under Labour, savers could contribute either 4 or 8 percent with a government subsidy of up to $20 a week and compulsory employer contributions, rising to 4 percent by mid 2011.
 
AMP said its SuperWatch research showed more people intended to work beyond the age or eligibility for New Zealand Superannuation.
 
Only a quarter expected to retire before the age of 65, down significantly from 35 percent a year ago.
 
New Zealanders clearly recognised the need to save for retirement, despite the current economic conditions.
 
Nearly three-quarters of those surveyed said they required additional income from personal investments or savings to realise their aspirations.
 
Of those who are saving, 58 percent say they are saving for retirement. This is significantly higher than levels in February 2007, but lower than the high of 65 percent reached a year ago.
Recruitment firm Robert Half surveyed a thousand employees from the finance sector. Megan Alexander discusses spoke to Michael Wilson  about their findings.
3 News / NZPA


 

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Comments [2]

Heather
09 May 2011 7:39p.m.

If the govtment is renerging on the kiwi saving then why are they allowed to make it composary to be in it. You should only have to choose to be in it. Not have to be in it.

Ty Williams
17 Apr 2009 10:35a.m.

All good, when labour get back in, govt & employer contributions will rise & the Nats won't be able to lower them a second time. It's a no brainer, kiwisaver is a winner for those who invest in it.

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