Kiwisaver Kick Start for All New Zealand Babies

All babies born in New Zealand would automatically be registered for a KiwiSaver account and receive a $1000 kick start from the government, New Zealand First Leader Rt Hon Winston Peters announced today.

The announcement was made at New Zealand First’s 2014 Election Campaign Launch in Auckland.

“Thousands of young New Zealanders have used KiwiSaver to help them save to buy their first homes, it’s common sense that it helps to pay for their tertiary education too” says Mr Peters.

“The money in their KiwiSaver account will only be able to used for tertiary education fees. If the young person does not go on to further study, the money will stay in their account to go towards their first home and retirement.

“Over their childhood and teenage years with contributions from family, the Christmas and birthday ‘$20 gifts’ from the grandparents, and the afterschool and holiday jobs, most people will see a sizable amount of savings after 18 years.

“Parents and family can contribute knowing that it will go towards tertiary education or a home - a basic need. It’ll change parental savings culture as well. It also teaches a child good savings habits from early on.

“The savings for the government will be substantial, not having to loan as much money to students for their tertiary education fees.

“Some will say this won’t have an affect for many years. They’re wrong of course, because we are setting out to change New Zealand to a savings culture.

“Our conservative estimates put the cost of this policy at around $60 million a year – more than what the Novopay disaster has already cost us.

“That’s $60 million reinvested back into our economy, our businesses and our people.

“By these means can we directly help so many of our young whilst at the same time further build the funds to free ourselves from the dependence on foreign money and foreign savings,” says Mr Peters.

ENDS

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