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

 


FSC Welcomes 7th Birthday for KiwiSaver

FSC Welcomes 7th Birthday for KiwiSaver and Points to What More Needs to Be Done

KiwiSaver has been the New Zealand’s most successful savings innovation in the last hundred years says the Financial Services Council, CEO, Peter Neilson. Speaking on the 7th launch of KiwiSaver, he said there were a number of reasons it has outperformed what even its most enthusiastic supporters expected.

The reasons for this are:

• For those who find it hard to save KiwiSaver made it easy to both enrol and put the money safely away before it could be spent.

• The kick start incentives and matching employer contributions made it a “no brainer” for most New Zealanders.

• As KiwiSavers see their balances steadily grow, New Zealanders are understanding the benefits of saving a little each week for a long time to build a retirement nest egg and increasing their financial literacy while it happens.

• More than 15,000 New Zealanders have benefited from using KiwiSaver to purchase a first home and many more plan to do so.

We now have more than 2.3 million New Zealanders in KiwiSaver more than three times the Treasury’s $700,000 initial estimate but we can make it even more successful:

• Most people are currently saving at the 6% rate (3% from themselves and 3% from their employer). To fund a comfortable retirement on about 2 times the NZ Super pension income ($282 after tax for each person in a couple) would require the contribution rate to go to 9% or higher.

• If KiwiSavers defaulted into a balanced or growth fund rather than a conservative one and the over-taxation of KiwiSaver funds was addressed, the contribution rates required to fund a comfortable retirement could drop to 7.6% or even 6.1% including for someone on a modest income.

Only 7.9% of New Zealanders (Horizon Research, October 2013) believe they can live comfortably on NZ Superannuation alone. It is now up to the politicians to decide how to increase the coverage and contributions into KiwiSaver.

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Balance Of Trade: NZ Posts Trade Deficit In October On Falling Dairy Exports

New Zealand’s posted its largest monthly trade deficit for October in six years, while narrowing the shortfall from September, led by a fall in dairy exports to China while all main imports into the country rose. More>>

ALSO:

Gigatown Winner: Plenty Of Positives For Dunedin

Although the city has taken the Gigatown title, along with new ultrafast 1Gbps broadband and funding for $700,000 worth of UFB-related initiatives across the community, Mr Cull says Dunedin has gained so much more through its involvement. More>>

ALSO:

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news