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

 


Abolished 1974 Super fund would now be worth $278 billion

Abolished 1974 Super fund would now be worth $278 billion, delivering $256,000 nest eggs


A report prepared by Infometrics estimates the 1974 New Zealand Superannuation Fund would be worth $278 billion by 1 April 2015 had the scheme continued. The Infometrics report, funded by the Financial Services Council, and released today also estimates that someone on the average wage, saving over 40 years would have had a retirement nest egg of $256,000 at age 65 by 1 April 2015.

The fund was built on 8% contributions (4% from employees and 4% from employers) invested half in New Zealand bonds and half in New Zealand shares.

That nest egg invested in a bank term deposit earning 5.5% would fund a comfortable retirement, adding $234 dollars a week after tax on top of the NZ Super pension which is currently $282 a week after tax for each person eligible in a married, civil or de facto relationship.

Financial Services Council Chief Executive Peter Neilson says: “This helps explain why three out of four adult New Zealanders think it was a mistake to scrap the 1974 Superannuation Scheme”.

The Financial Services Council commissioned Infometrics to estimate the value of the 1974 NZ Super Scheme had it not been abolished after the change of Government in November 1975. Had the NZ Super Scheme continued there would now have been $139 billion invested in the New Zealand share market and another $139 billion invested in debt instruments.

The value of the total listings on the NZ Stock Exchange is currently $87 billion of which around $2 billion is from KiwiSaver funds.

“1974 Super fund investors would own a substantial proportion of our own listed
companies. We would also have a lower dollar, more New Zealanders on higher wages and fewer fast growing companies would have to sell equity to foreigners to be able to grow,” Mr Neilson says.

“Public opinion has changed since 1974, and most supporters of parties currently represented in Parliament now support making KiwiSaver universal (compulsory).

“We think the Infometrics report will help inform the Budget and General Election debates this year on how we can ensure New Zealanders achieve a comfortable retirement and how best to address our persistent current account deficit and growing external borrowing despite record terms of trade.”

Ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell:
On The Northland By-Election

Supposedly, Winston Peters’ victory in Northland has exposed the simmering dissatisfaction with the government that exists out in the provinces. Yet it remains to be seen whether this defeat will have much significance – and not simply because if and when Labour resumes business as usual in the Northland seat at the next election, Peters’ hold on it could simply evaporate.

On Saturday, National’s electorate vote declined by 7,000 votes, as the 9,000 majority it won last September turned into a 4,000 vote deficit – mainly because Labour supporters followed the nod and wink given by Labour leader Andrew Little, and voted tactically for Peters. In the process, Labour’s vote went down from nearly 9,000 votes six months ago, to only 1,315 on Saturday. More>>

 

PARLIAMENT TODAY:

IPCA Reports: Significant Problems In Police Custody

In releasing two reports today, the Independent Police Conduct Authority has highlighted a number of significant problems with the way in which Police deal with people who are detained in Police cells. More>>

ALSO:

Inspector-General of Intelligence and Security: Inquiry Into GCSB Pacific Allegations

The complaints follow recent public allegations about GCSB activities. The complaints, and these public allegations, raise wider questions regarding the collection, retention and sharing of communications data. More>>

ALSO:

TPPA Investment Leak: "NZ Surrender To US" On Corporates Suing Governments

Professor Jane Kelsey: ‘As anticipated, the deal gives foreign investors from the TPPA countries special rights, and the power to sue the government in private offshore tribunals for massive damages if new laws, or even court decisions, significantly affected their bottom line’. More>>

ALSO:

Werewolf: The Myth Of Steven Joyce

Gordon Campbell: The myth of competence that’s been woven around Steven Joyce – the Key government’s “Minister of Everything” and “Mr Fixit” – has been disseminated from high-rises to hamlets, across the country... More>>

ALSO:

RMTU: No Public Submissions On International Government Procurement Deal

“The government is preparing to assent to the Government Procurement Agreement, a World Trade Organisation Treaty which opens up New Zealand Government contracts to foreign companies and closes the door on local businesses and their workers. However the Foreign Affairs, Defence and Trade Select Committee is refusing to take public submissions on the decision.” More>>

ALSO:

Gordon Campbell:
On Pacific Spying

So New Zealand spied on its friends and allies in the Pacific – and has not only been passing on the results to the NSA, but has apparently passed on the details of the Pacific’s relations with Taiwan to our other best friends, the Chinese. On the side, the Key government has also been using the security services to gauge the chances of Trade Minister Tim Groser landing the top job at the WTO... More>>

ALSO:

State Housing Transfer: Salvation Army Opts Out

The Salvation Army has decided against negotiating with Government for the transfer of Housing New Zealand stock.
More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news