Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Financial Confidence And Capacity Essential to Wellbeing

Wellbeing must include financial wellbeing says Financial Advice New Zealand following the release of the 2019 Budget.


“There is a clear link between wellbeing and financial confidence and capacity,” says Katrina Shanks, CEO of Financial Advice New Zealand. “To help New Zealanders build a successful future, access to quality advice and confident use of tools such as KiwiSaver, is essential.”

“Sixty-eight percent of New Zealanders have money worries and 44% could access only one month or less of income from savings or other means*. That’s two of the many very concerning statistics that access to quality financial advice can greatly aid in improving,” says Shanks.

“KiwiSaver advice for young New Zealanders starting work is a prime example: we want to see more young Kiwis able to access quality advice on this essential savings tool at the beginning of their working life; to help give them confidence and capacity to build financial wellbeing.”

“We are making a set of recommendations regarding KiwiSaver to the Commerce Minister: The Financial Advice New Zealand Keeping KiwiSaver Simple Initiative includes three key policy recommendations: (1) Access to Advice on a KiwiSaver Scheme, (2) Levels of Contribution Rates, and (3) AML requirements for non-employees.”

Access to Advice on a KiwiSaver Scheme

Twenty percent of KiwiSaver members are on a default scheme, primarily because they are unaware of the options and which scheme is right for their needs and goals.

“We believe the Government should provide assistance for existing and new KiwiSaver participants to access financial advice through the workplace or through an approved financial adviser register. This will give more Kiwis the ability to assess the schemes and what is best for their needs,” says Shanks.

Levels of Contribution Rates

To best align KiwiSaver with the personal financial goals and needs of the individual, members should be able to choose their own levels of contribution.

“Currently the minimum contribution of 3% is prohibitive for Kiwis on low incomes; and the maximum of 10% is limiting for those who may want to fast track their savings.”

“We recommend that there be no set contribution rate except for a minimum of 3% for members, as well as the introduction of a 1% contribution for low income earners and beneficiaries.”

AML requirements for non-employees

Currently those who are self-employed or under 18 years old have higher regulatory requirements to become a KiwiSaver participant.

“Common sense indicates that the level of risk of money laundering and terrorism activity through a KiwiSaver plan is low, and as such the AML requirements for this group of Kiwis is an unnecessary barrier to participation. We recommend that all KiwiSaver participants be excluded from AML requirements,” says Shanks.

-ends-


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

National: National Backs Businesses With $10k JobStart

National will provide a $10,000 cash payment to businesses that hire additional staff as part of our commitment to keeping New Zealanders in jobs, National Party Leader Todd Muller and Finance spokesperson Paul Goldsmith have announced. Our JobStart ... More>>

ALSO:

DIY Law: Government Exempts Some Home Improvements From Costly Consents

Homeowners, builders and DIYers will soon have an easier time making basic home improvements as the Government scraps the need for consents for low-risk building work such as sleep-outs, sheds and carports – allowing the construction sector ... More>>

ALSO:

Media Awards: The New Zealand Herald Named Newspaper Of The Year, Website Of The Year At Voyager Media Awards

The New Zealand Herald has been labelled a “powerhouse news operation” as it claims the two biggest prizes – Newspaper of the Year and Website of the Year – along with many individual awards at the 2020 Voyager Media Awards Website of the ... More>>

ALSO:

ASB Bank: ASB Takes The Lead Again With New Low Home Loan Interest Rate

ASB has moved again to support its customers, cutting a number of home loan rates, including the two-year special rate to a new low of 2.69% p.a. Craig Sims, ASB executive general manager Retail Banking says the reduced rate will be welcome news for many ... More>>

ALSO:

Nathan Hoturoa Gray: The Problems With Testing And Case Statistics For Covid-19

To begin to understand disease transmission in a country requires adequate testing of your population with properly vetted, accurate tests. As the world struggles to find what 'adequate percentage' of the population is necessary, (estimates predict ... More>>

ALSO:

RNZ: Fletcher Building To Lay Off 1000 Staff In New Zealand

The construction company will cut around 10 percent of its workforce as it struggles with the fallout from Covid-19. More>>

ALSO:

Can Pay, Won't Pay: Cashflow Moves Urged

Government Ministers are asking significant private enterprises to adopt prompt payment practices in line with the state sector, as a way to improve cashflow for small businesses. More>>

ALSO:

Gordon Campbell: On Why We Should Legally Protect The Right To Work From Home

For understandable reasons, the media messaging around Level Two has been all about “freedom” and “celebration”, but this is not necessarily going to be a universal experience. When it comes to workplace relations, Level Two is just as likely to ... More>>

ALSO:



Auckland Airport: Thousands Of Kiwis Travelling For Queen’s Birthday Weekend


Confidence in domestic travel is beginning to steadily ramp up, with thousands of Kiwis travelling within New Zealand for Queen’s Birthday.
Nearly 400 flights will be operating to and from Auckland Airport over the long weekend... More>>

ALSO:

Science Media Centre: Understanding 5G Concerns – Expert Q&A


Recent attacks on cell phone towers have brought concerns over the rollout of 5G technology into sharp relief.
While scientific research has consistently shown that the technology does not adversely affect human health, public concerns about its impact have spread around the world, fueled in part by growing misinformation online. The SMC asked experts to comment... More>>

ALSO:


Trade: Record Monthly Surplus As Imports Dive

Imports in April 2020 had their biggest fall since October 2009, resulting in a monthly trade surplus of $1.3 billion, Stats NZ said today. “This is the largest monthly trade surplus on record and the annual goods trade deficit is the lowest ... More>>

ALSO:


Media Blues: Stuff Chief Executive Buys Company For $1

Stuff chief executive Sinead Boucher has purchased Stuff from its Australian owners Nine Entertainment for $1.
The chief executive was returning the company to New Zealand ownership, with the sale is expected to be completed by 31 May.
"Our plan is to transition the ownership of Stuff to give staff a direct stake in the business as shareholders," Boucher said in a statement.... More>>

ALSO:

RNZ: Bar Reopening Night 'much, Much Quieter'

Pubs and bars are reporting a sluggish first day back after the lockdown, with the fear of going out, or perhaps the joy of staying home, thought to be a reason for the low numbers. More>>

ALSO:

Stats NZ: New Zealand’s Population Passes 5 Million

New Zealand's resident population provisionally reached 5 million in March 2020, Stats NZ said today. More>>

NIWA: Seven Weeks Of Clearing The Air Provides Huge Benefits: Scientist

Seven weeks of lockdown has provided evidence of how pollution can vanish overnight with benefits for the environment and individuals, says NIWA air quality scientist Dr Ian Longley. Dr Longley has been monitoring air quality in Auckland, Wellington ... More>>

ALSO:

Government: Milestone In Cash Flow Support To SMEs

A significant package of tax reforms will be pushed through all stages in Parliament today to throw a cash flow lifeline to small businesses. More>>

ALSO: