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

 


FSC Welcomes Labour’s Plan for Comfortable Retirement

17 June 2014

FSC Welcomes Labour’s Plan to Help More New Zealanders Achieve a Comfortable Retirement

The Financial Services Council (“FSC”) welcomes Labour’s Plan to help more New Zealand employees achieve a comfortable retirement by stepping up KiwiSaver contributions up to 9% over time.

Only 8% of New Zealanders believe they could live comfortably on NZ Super alone. Most New Zealanders say they need about two times NZ Super(currently $282 per week for each of a couple) to be comfortable in retirement. For most New Zealanders KiwiSaver is their only means of getting to a comfortable retirement.

A combined 9% KiwiSaver contribution rate is sufficient to achieve a comfortable retirement after 40 years saving even for someone on the minimum wage.

FSC, CEO, Peter Neilson said that the Labour Plan to step up contributions gradually so everyone is eventually saving 9% (split 4.5% from themselves and 4.5% from their employer) is consistent with our earlier advice and what our polling says is acceptable to the public.

Starting current non KiwiSavers at only 1% and stepping up contributions by 1% a year and 0.25% a year for existing KiwiSavers addresses concerns about affordability for employees. It is useful to remember that when Australia started its journey on compulsory superannuation in 1992 their wages were about the current level in New Zealand.

If KiwiSavers were to default into Balanced or Growth funds rather than the current Conservative funds and the over-taxation of KiwiSaver funds was also addressed, the contribution rate required could drop below 9%. The FSC has pointed out that removing the over-taxation of KiwiSaver funds to achieve a fair tax system for savers could have substantially been paid for by phasing out the $521 Member Tax Credit that Labour has committed to keeping.

We look forward to hearing from other parties their plans for expanding access to a comfortable retirement using KiwiSaver.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news