Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

National’s cuts shave $100K off KiwiSaver by retirement

Andrew Little
Leader of the Opposition

MEDIA STATEMENT

1 July 2016

National’s cuts shave $100K off KiwiSaver by retirement

New analysis shows National’s constant cuts to KiwiSaver will reduce the average worker’s retirement savings by $100,000 over their working life, Leader of the Opposition Andrew Little says.

“The former Labour Government launched KiwiSaver nine years ago today to boost the country’s savings and ensure all New Zealanders have a nest egg in their retirement.

“National has gutted KiwiSaver. Since coming to office it has made five separate cuts to the scheme:

• Taxed employer contributions

• Halved the maximum Member Tax Credit from $1042 to $521

• Halved the Member Tax Credit rate from $1 for every dollar saved to 50c

• Reduced employee/employer contributions from 4 per cent to 3 per cent

• Abolished the kick-start payment

“Analysis by the Parliamentary Library (attached) shows a worker on the average wage joining the scheme today will have total contributions of $3500 after their first year. That would have been $6700 without these cuts.

“After their first year, the average worker misses out on $2,200 a year in contributions. That adds up to $100,000 the average worker will miss out on if they retire after 45 years’ work. That’s a big slice of their nest egg.

“Axing the start-up payment alone resulted in new KiwiSaver sign-ups plummeting.

“Figures released this week show growing inequality under this Government. National’s KiwSaver cuts are making inequality worse by making it harder for middle New Zealand to save.

“For many people, KiwiSaver is their largest financial asset outside their home – if they’re lucky enough to own one. Having less savings in their scheme means people will be forced to work for longer and will have less to retire on,” Andrew Little says.

ENDS

KiwiSaver_Cuts.xlsx

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Risk Of Being Short Changed By Pfizer

Who knew that the delivery of the Covid vaccines was going to be such a headache? All the predictions had been around the likely distribution problems. Would there be enough trained vaccinators around the country, a sufficient number of medical glass vials, a sufficiently robust “cold chain” to safely store the vaccines out in the field? All those issues remain. Currently though, production and delivery concerns are also hovering over whether the drug companies will live up to their contractual commitments, on time... More>>

 

National: Leader Of The Opposition’s State Of The Nation Speech

Kia ora and thank you for that welcome. It is a pleasure to be here. Thank you to the Rotary Club of Auckland and the EMA for hosting me at this first event in your centenary year. National and Rotary share many common principles, including community ... More>>

ALSO:

Ministry Of Health: Probable Case Of COVID-19 In A Returnee

The Ministry of Health is investigating a positive test result in a person who recently travelled from overseas and completed their stay in managed isolation in a facility in Auckland. In the case we are investigating and reporting today, the person had ... More>>


ALSO:


Oranga Tamariki: Chief Executive Grainne Moss Steps Down

Controversial Oranga Tamariki chief executive Grainne Moss has decided to step down. More>>

ALSO:

USA: Prime Minister Congratulates President Joe Biden On His Inauguration

Prime Minister Jacinda Ardern has congratulated President Joe Biden on his inauguration as the 46th President of the United States of America. “I look forward to building a close relationship with President Biden and working with him on issues that matter ... More>>

ALSO:


Government: New Zealand And China Sign FTA Upgrade

Trade Ministers for New Zealand and China today signed an upgrade to the free trade agreement between the two countries. “This modernises our free trade agreement and ensures it will remain fit for purpose for another decade,” Minister for Trade ... More>>

Oxfam NZ: Wealth Of New Zealand’s Richest Person’s Soars By $3.4bn Since Beginning Of Pandemic

New Zealand’s richest citizen, Graeme Hart, has seen his fortune increase by NZ$3,494,333,333 since March 2020 – a sum equivalent to over half a million New Zealanders receiving a cheque for NZ$6,849 each, reveals a new analysis from Oxfam today. The New Zealand ... More>>

ALSO:

Government: New Public Housing Plan Announced

RT HON JACINDA ARDERN HON DR MEGAN WOODS The Government has released its Public Housing Plan 2021-2024 which outlines the intention of where 8,000 additional public and transitional housing places announced in Budget 2020, will go. “The Government ... More>>

Government: Pre-Departure Testing Extended To All Passengers To New Zealand

To further protect New Zealand from COVID-19, the Government is extending pre-departure testing to all passengers to New Zealand except from Australia, Antarctica and most Pacific Islands, COVID-19 Response Minister Chris Hipkins said today. More>>

ALSO:

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels