Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

Changes to KiwiSaver unfortunate

Media Release

17 May 2007

Changes to KiwiSaver unfortunate

The Retirement Policy & Research Centre at The University of Auckland raises concerns about the latest changes to KiwiSaver, announced in the 2007 Budget.

Susan St John, co-director of the Centre said that the very large tax-funded contributions to KiwiSaver will:

1. see huge shifts from other forms of saving to KiwiSaver.

2. not address the problem with the Current Account Deficit – in fact it may worsen the present position.

3. will widen the gap between the poor and the rich in old age – gaps measured by pay during the working life will be amplified by contributionrelated benefits in retirement.

4. impose huge compliance costs.

5. increase consumer spending in early retirement and so detract from savings goals.

6. encourage housing as an investment by the complex first home-owner provisions, although the detail of who is eligible is no clearer than before.

7. enhance overseas investment not investment in New Zealand.

8. cause a diversion into PIE and similar schemes with the reduction of the PIE rate to 30% with significant tax losses. The advantages accrue to the better off, especially those on 39%.

9. destroy any political consensus on retirement policy and put New Zealand back to the instability we had before the 1993 Accord.

Susan St John said “the high international regard in which New Zealand’s simple, equitable and non-distortionary retirement income policies are held has been seriously undermined."


ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

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…

In fact, the polls suggest that the public seems to quite like the new government, its Prime Minister, and its proposed plan of action. Somehow, even though a Labour/Greens/NZ First government is in power, the sun is still rising and setting, on time. 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>>

ALSO:


Gordon Campbell: On Saying ‘Work For The Dole,’ Nicely

As New Zealand First learned the hard way from its two previous periods in government, small parties in MMP coalitions get blamed for the unpopular stuff done by their senior partner in power, but no one remembers the good stuff the junior player brought to the table... More>>

ALSO:

Seismic Blasting: Greenpeace Launches Legal Challenge Against Amazon Warrior

A legal challenge against the world’s largest seismic oil exploration ship was launched at a public rally on Parliament Lawn. More>>

ALSO:

Tertiary: 80,000 People Eligible For Fees Free

The Government has today made good on its 100-day promise of delivering the first year of fees-free post school training and education and industry training from 1 January next year, says Education Minister Chris Hipkins. More>>

ALSO:

PM's Presser: Rebuilding Cathedrals, Felling Trees

Prime Minister Jacinda Ardern attended the press conference today with Minister for Greater Christchurch Regeneration Dr Megan Woods to announce urgent legislation this week for the rebuilding of the Christ Church Cathedral. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages