Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


NZers with a Mortgage Even Keener on Compulsory KiwiSaver

19 May 2014


For Immediate Release


New Zealanders with a Mortgage Even Keener on Compulsory KiwiSaver

New Zealanders with a mortgage have even more enthusiasm for compulsory KiwiSaver than Kiwis generally, says Financial Services Council (FSC), CEO, Peter Neilson.

In a Sunday Star Times/Stuff opinion piece (D14, May 18, 2014) it is suggested that the statement “New Zealand does need a compulsory retirement savings scheme even if it means it takes longer for me to pay my mortgage off” might elicit a “whole different outcome” than the 70.7%, or 7 out of 10 adult New Zealanders shown to be supporting compulsory KiwiSaver, in the independent Horizon Research survey undertaken for the FSC in October 2013.

However, the 927 respondents in the survey with a mortgage on their own home, supported compulsory KiwiSaver by 72.6%. Of the 879 respondents aged between 18 and 64, with mortgages on their own home, 74% supported compulsion.

The issue for middle and lower income New Zealanders is not whether you save either for a house or a comfortable retirement, they know you have to save for both and many are doing so using KiwiSaver, Mr Neilson says.

“If you get to retirement without mortgage free accommodation, you probably won’t achieve an adequate retirement, living on NZ Super alone.

“KiwiSaver for most New Zealanders is the best way to save your first home deposit and later to save to achieve a comfortable retirement. That’s why more than 10,000 New Zealanders have already used KiwiSaver to save the deposit to purchase their first home.”

Investment in a home or rental property is strongly tax favoured, whereas KiwiSaver funds face punitive taxation in comparison.

“That’s why the FSC is campaigning for fair taxation of KiwiSaver funds. Paying off the mortgage or saving for retirement in KiwiSaver is a false choice, we need to do both and a fairer tax treatment for KiwiSaver funds would help both objectives,” Mr Neilson says.

“The FSC has not itself taken a position on whether KiwiSaver should be compulsory or stay voluntary but has commissioned research and polling to help New Zealanders, our politicians and their advisers to be better informed about the options available.”

Currently interest earned on KiwiSaver investments is taxed. The FSC has told MPs that reforms to reduce the world’s most punitive taxes on savings could drop contributions for someone on the average wage by $164,000 and the tax change boosts their nest egg by $288,000 over a 40 year working life.

Q23. And now that you have thought about it some more, what do you think of New Zealand making KiwiSaver compulsory, where all employees and employers have to contribute? ALLAll with mortgages on their own homes18-64 with mortgages on their own homes
It's a terrible idea and I'd oppose it6.9%5.9%6.4%
It's probably a good idea for New Zealand, but not for me and so I'd oppose it5.5%6.2%5.8%
It's a good idea and I'd support it, with some reservations29.6%27.0%28.0%
It's a good idea and I'd fully support it35.4%40.0%40.0%
I don't know but I'm leaning towards opposing it3.4%4.0%4.1%
I don't know but I'm leaning towards supporting it5.7%5.6%6.0%
I'm neutral at this stage8.4%7.9%6.4%
I really don't know5.1%3.3%3.3%
Total Support70.7%72.6%74.0%
Neutral8.4%7.9%6.4%
Total Oppose15.8%16.1%16.3%
Not sure5.3%0.0%2.1%
N (unweighted)2767927879
Margin of error±1.9%±3.2%±3.3%


Source: October 2013, Horizon Research survey of 3,060 respondents nationwide aged 18+ Weighted to represent the adult population at the 2013 census. At a 95% confidence level the maximum margin of error is ±1.8%.


ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

BusinessDesk: SkyCity Lifts Minimum Convention Centre Investment To $430M

SkyCity Entertainment Group, the casino operator, has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs including land may be $450 million to $470 million. More>>

Statistics: Drop In Dairy Prices Leads Fall In Exports

Total goods exports fell $240 million (5.5 percent) to $4.2 billion in April 2015 compared with April 2014, Statistics New Zealand said today. More>>

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>


Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>

BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news