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

 

Scoop Business:
NZ Puts Seven New Oil And Gas Areas Put Up For Tender

A total of seven new areas will be opened up to oil and gas exploration under its block offer tendering system, as the New Zealand government seeks to concentrate activity in a few strategically chosen areas. More>>

ALSO:

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news