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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Oceans: NOAA Declares Third Ever Global Coral Bleaching Event

As record ocean temperatures cause widespread coral bleaching across Hawaii, NOAA scientists confirm the same stressful conditions are expanding to the Caribbean and may last into the new year, prompting the declaration of the third global coral bleaching event ever on record. More>>

Scoop Business: A Decade Of Government Pre-Seed Investment

More publicly-funded science is being commercialised after a decade of government ‘pre-see’d investment, according to an independent review. More>>


Solid Energy: Plan To Shut Unprofitable Huntly East Mine

Solid Energy, the state-owned coal miner in voluntary administration, plans to shut down its unprofitable Huntly East mine and lay off 65 staff after deciding the site stands "no chance whatsoever" of finding a buyer. More>>


E Tū: Merger Creates NZ's Biggest Private Sector Union

E tū has been created by the merger of the Engineering, Printing and Manufacturing Union and Service and Food Workers’ Union. It represents more than 50,000 working New Zealanders in industries as diverse as aviation, construction, journalism, food manufacturing, mining and cleaning. More>>


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news