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

 

New Zealand’s trillion dollar KiwiSaver challenge

New Zealand’s trillion dollar KiwiSaver challenge

The Financial Services Council (FSC) has today released a new discussion paper, KiwiSaver 2050: Pathways to the Future, aimed at kickstarting a conversation about how New Zealand can make the most of the nearly trillion dollar opportunity that KiwiSaver will present in 2050 and beyond.

The discussion paper takes a whole-of-system look at KiwiSaver and the broader New Zealand retirement framework and highlights a number of key considerations and issues to address, which will be fundamental to the long-term success of KiwiSaver.

“In commissioning KiwiSaver 2050 we wanted to help start a debate and conversation about how KiwiSaver can be refined and improved in future years to better deliver for New Zealanders and our long-term health and well-being”, said Richard Klipin, CEO of the Financial Services Council.

“KiwiSaver is still a young scheme, but it is growing fast and we estimate that almost one trillion dollars in funds will be under management by 2050 ($498bn in real terms). These are big numbers and the potential positive benefits for New Zealand if we get the KiwiSaver framework right for future demands are significant.

“We’re not claiming to have all the answers but we’re hoping that KiwiSaver 2050, by taking a holistic look at the KiwiSaver framework rather than an issues based approach, will help further the debate.”

Video | Play/Download


KiwiSaver 2050 identifies six key issues which will be fundamental to the long-term success of KiwiSaver:
1. Increasing participation – expanding the coverage of KiwiSaver and increasing the level of participation.
2. Building contribution levels – increasing the savings level of those who are contributing already to a sustainable point.
3. From accumulation to decumulation – developing options for those who have already retired to decumulate their savings.
4. Continued focus on financial literacy – while financial literacy is improving more work is needed to ensure Kiwis understand how to save.
5. Improved scheme efficiency and effectiveness – a focus on continued improvement utilising advances in technology and analytics to drive greater efficiency and engagement.
6. Political leadership and policy stability – policy stability and predictability is critical for the long-term good of KiwiSaver.

“Each of the areas identified above are complex and there are no easy fixes or quick solutions to achieving them”, says Klipin.

“However, the discussion paper does propose a number of ideas for further consideration and discussion to help drive better outcomes in these areas.

“For instance, increasing participation through providing a minimum level of saving so that those who are unable to join KiwiSaver can get started in the scheme.

“Or building contribution levels by increased engagement with KiwiSaver members in default funds to move them to more appropriate funds, making Conservative Funds less conservative, and continuing KiwiSaver contributions when a member is on parental leave.

“The paper also proposes consideration being given to the development of an annuity market in New Zealand to aid with decumulation, and the development of a political accord and dedicated Government Ministry to ensure ongoing stability and predictability in retirement policy making.

“These ideas and the many others in KiwiSaver 2050 are just a start and we look forward to an ongoing conversation with industry, regulators, politicians and the public about how best to grow KiwiSaver and deliver New Zealanders a world-class retirement”, concluded Klipin.

The full discussion paper, KiwiSaver 2050: Pathways to the Future, can be found here.

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Energy Sector: Meridian Spilled Water To Hike Electricity Prices - Authority Ruling

The Electricity Authority has found that generator Meridian Energy manipulated the power market, costing consumers about $80 million. More>>

ALSO:

XE Data Update: RBNZ Official Cash Rate Decision

The RBNZ will keep the Official Cash Rate (OCR) at 0.25%. T he key points in the RBNZ statement are: RBNZ keeps the OCR unchanged at 0.25% Maintain the LSAP (large scale asset purchase) at NZD$60 billion. Committee prepared to use additional monetary ... More>>

ALSO:

Electricity: Kiwis Ignore Promise Of Cheaper Power

Electric Kiwi and Flick Electric Co are joint winners of Canstar Blue’s award for Most Satisfied Customers | Electricity Providers From putting on an extra layer – rather than turning on a heater – to turning off lights and choosing the energy-saving ... More>>

ALSO:

Economy: COVID-19 Contributes To 1.6 Percent Fall In March Quarter GDP

Gross domestic product (GDP) fell 1.6 percent in the March 2020 quarter, the largest drop in 29 years, as the initial effects of COVID-19 restrictions impacted on economic activity, Stats NZ said today. This quarter’s GDP results showed a widespread drop ... More>>

ALSO:


Electricity: Transmission Pricing For A Low Carbon Future

The Electricity Authority has decided on new guidelines for transmission pricing. James Stevenson-Wallace, Chief Executive of the Electricity Authority says the new guidelines will deliver significant benefits to consumers, through lower electricity ... More>>

ALSO:

ASB: Investor Confidence Falls To Four-Year Low

As the world grapples with the fallout from the most significant pandemic the world has seen in a century, economic concerns are weighing on investors, dragging investor confidence down to a four-year low in the first quarter of the year. For the three ... More>>

ALSO:

Science Media Centre: Funding For R&D In New Zealand – Expert Reaction

Research, Science and Innovation Minister Dr Megan Woods has today announced $401.3 million funding for research and development through Budget 2020 and the COVID Response and Recovery Fund. The fund includes $150 million for an R&D loan scheme, ... More>>

ALSO:


Science: 2019 Prime Minister’s Science Prizes Announced

The 2019 Prime Minister’s Science Prizes have been announced in a digital livestream event today. The Prizes recognise the impact of science on New Zealanders’ lives, celebrate the achievements of current scientists and encourage scientists of the ... More>>

ALSO:


RNZ: Fuel, Alcohol Costs To Go Up From Today

The increase today in the taxes on fuel, road user charges and alcohol is being called a tone-deaf move. More>>

ALSO:

Stardome Observatory: Young Kiwi Astro-Photographer Shoots For The Stars

Matariki by Josh Kirkley. The stars are aligning for up-and-coming Auckland-based astro-photographer Josh Kirkley (Kāi Tahu). During lockdown, one of his images was picked up by NASA and shared on the space agency’s Instagram to its 59.2 million ... More>>


DCANZ: Time For EU To Commit To A Level Playing Field For Trade

The Dairy Companies Association of New Zealand (DCANZ) has welcomed New Zealand Trade Minister David Parker’s statement that it is unacceptable for New Zealand exporters to continue facing an ‘unlevel playing field’ in the EU. Details leaked ... More>>

ALSO:

Potatoes New Zealand: Protecting NZ Fries As Part Of PNZ Pandemic Recovery & Transformation Plan

Potatoes New Zealand has met with Minister Faafoi this week to discuss investigating the potential importation of heavily discounted frozen potato chips into New Zealand. With MBIE’s support we are undertaking an investigation to gather evidence of the ... More>>

ALSO:


New Zealand Government: Supporting Kiwi Businesses To Resolve Rent Disputes

The Government will legislate to ensure businesses that suffered as a result of the COVID-19 response will get help to resolve disputes over commercial rent issues, Justice Minister Andrew Little announced today. 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: