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

Anzac Day:


Reshuffle: PM Announces Changes To Ministerial Portfolios

Prime Minister Bill English today announced the appointment of Gerry Brownlee as Minister of Foreign Affairs, Nathan Guy as Minister of Civil Defence, Nikki Kaye as Minister of Education and Mark Mitchell as Minister of Defence.

The changes follow the resignations from Cabinet of Hekia Parata and Murray McCully.

In other changes Simon Bridges has been appointed Leader of the House and Nicky Wagner has been made Minister supporting Greater Christchurch Regeneration. More>>

 

Q+A Transcript: CTU Call For 'National Standards' On Wages

‘If you look at countries who do better than us, who pay wages better, who have more competitive industries, more successful economies, they have systems where there are national standards.’ More>>

ALSO:

Health Workers Respond: People's Mental Health Report Released

The People's Mental Health Review reinforces a recent YesWeCare.nz survey of 6,000 health workers, which found nine in 10 believe they don't have the staff or resources to deliver the care Kiwis need when they need it. More>>

ALSO:

More Mental Health:

Energy: Greens Launch Plan For Cheaper And Cleaner Electricity

$112 million for winter warm-up payments to help low-income households cover their power bills • setting a goal for 100 percent renewable electricity by 2030 (in average hydrological conditions) • an investigation into the electricity wholesale market. More>>

ALSO:

Gordon Campbell: On The Aged-Care Settlement

Until yesterday, a National government has always been the sworn enemy of women seeking justice in the workplace, in the face of gender-based pay discrimination. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news