Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Public option for KiwiSaver will keep fees low

Public option for KiwiSaver will keep fees low

A public option for KiwiSaver will reduce fees, saving KiwiSavers tens of thousands of dollars over the lifetime of their investment, the Green Party said today.

KiwiSaver research company Canstar released a report today showing KiwiSaver fees are rising faster than inflation. Canstar says a few dollars in fee savings can add up to a substantial difference over the life of an investment, and your retirement savings.

“The Green Party is going to add value to people’s KiwiSaver scheme by reducing the fees and costs they face,” Green Party Co-leader Dr Russel Norman said today.
“We are going to do to superannuation, what Kiwibank has done for banking.”

“A public KiwiSaver option will intensify competition in the superannuation industry driving down costs.

“A significant part of KiwiSavers’ savings is being eaten away by high and rising costs and fees. By offering a public KiwiSaver option, we can lower costs saving tens of thousands of dollars.

“If these savings are reinvested, KiwiSavers’ nest eggs will be significantly higher, up to $142,000 higher in some cases ($64,000 in today’s dollars).”

The recommendation for a single default provider was made by the Government’s own Savings Working Group. The Savings Working Group estimates that a single large provider can reduce the costs of KiwiSaver by a factor of two-to-three. A 40 percent saving in costs and fees over the lifetime of a typical KiwiSaver will result in a bigger nest egg on retirement of anywhere from $23,000 to $142,000.

“The public fund can achieve significant fee and cost reductions through greater economies of scale. The fund can be managed by the Guardians of the $26 billion New Zealand Superannuation Fund while Kiwibank or the Inland Revenue Department can provide the front-end management of individual KiwiSaver accounts,” Dr Norman said.

“Like Kiwibank, the public fund will be New Zealand owned, managed in an arm’s length, commercial way, in the interests of the New Zealand economy.”


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Principals' Federation:
End Of National Standards

Today the Minister of Education announced that the Government has stopped the controversial National Standards system of assessment and declared them an arbitrary measure which did not raise children's achievement as the previous Government intended.

"This is such a win for all the principals who never believed in national standards and who, for the past decade, have argued for what is morally right for our nation's young people and their learning," said Cormick. More>>


Public Good: People’s Report On Public Broadcasting And Media Presented

The People’s Commission on Public Broadcasting and Media, was crowdfunded and was informed by an extensive consultation, seeking the views of both those working in Media as well as gathering input both online and in person from ordinary Citizens. More>>


RBNZ To RNZB: PM's Press Conference

Prime Minister Jacinda Adern was joined by Minister of Finance Grant Robertson and Minister for Children Tracey Martin to announce the appointment of Adrian Orr as the new Governor of the Reserve Bank and the name change of the Ministry for Vulnerable Children to ‘Oranga Tamariki - Ministry for Children’. More>>


'Taming Globalised Capital': Why Is Labour Supporting Investment Rules In WTO?

‘Today, we learned the new government has added New Zealand’s name to a proposal designed to lead to foreign investment rules in the WTO at this week’s ministerial meeting in Argentina,’ said Auckland University Professor Jane Kelsey. More>>


Gordon Campbell: On The Politics Of Scaring Voters Back Into Line

Fear has always been a useful mobilising tool in politics… yet in 2017, bogeymen of all shapes and sizes seem to have fallen on hard times. For years, the National party had painted itself as being the only reliable defensive bastion against the terrifying prospect of a centre-left government… More>>


Gordon Campbell: On Drinking Water As A Failure Of Political Leadership

It is almost possible to feel sorry for the Health Ministry in their terrible, no good, very bad week... More>>





Featured InfoPages