The Government has already lifted the minimum contribution rate from 3.0% to 3.5%, which 99.5% of default rate savers went with – only 0.5% went back to 3.0%.
Luxon announced four big changes to KiwiSaver:
I love the idea of every baby getting a KiwiSaver account. The cost is quite small (under $100 million a year) but fostering a savings culture in kids is so important. We have KiwiSaver accounts for our kids (and I do a matching contribution for what they save). A culture of self reliance is a core National Party belief.
This also sets the stage for a more sustainable NZ Superannuation scheme in future. If every New Zealander, over time, has significant private savings, this allows public superannuation to be set at a more affordable level at some future stage.
David Farrar runs Curia Market Research, a specialist opinion polling and research agency, and the popular Kiwiblog where this article was sourced. He previously worked in the Parliament for eight years, serving two National Party Prime Ministers and three Opposition Leaders
- Making KiwiSaver compulsory from 1 July 2028 for employees
- A $1,500 KiwiSaver account for every baby born from 1 July 2027
- The Government to make employer contributions for parents on paid parental leave
- Extending matching employer contributions for KiwiSaver to those still working at age 65 and above.
I love the idea of every baby getting a KiwiSaver account. The cost is quite small (under $100 million a year) but fostering a savings culture in kids is so important. We have KiwiSaver accounts for our kids (and I do a matching contribution for what they save). A culture of self reliance is a core National Party belief.
This also sets the stage for a more sustainable NZ Superannuation scheme in future. If every New Zealander, over time, has significant private savings, this allows public superannuation to be set at a more affordable level at some future stage.
David Farrar runs Curia Market Research, a specialist opinion polling and research agency, and the popular Kiwiblog where this article was sourced. He previously worked in the Parliament for eight years, serving two National Party Prime Ministers and three Opposition Leaders
4 comments:
But for the economic-ignoramus Muldoon, NZ would have at least $500 billion today in compulsory super. The drunk buffoon scraped compulsory super in 1975 - imagine what a wealthy country NZ would be today but for that short sighted economic sabotage.
But better be late than never for NZ. Hopefully future generations will benefit from NZ at long last joining countries like Australia and Singapore in enacting compulsory super.
May they also never fall for the kind of bribery of ‘free’ benefits as was promised by the moron Muldoon.
Alas, we can see the avalanche of freebies already being promised in this coming election.
Why should every baby get $1,500?
What is the benefit of that to anyone?
It has contributed nothing to society and likely neither have the parents.
Wouldn't that money be better spent on services which might help it survive at least childhood?
It's a long time between birth and that citizen becoming a member of society that can contribute.
And we already have an abundance of those that contribute nothing.
This daydreaming fluffy idealism is best reserved for fairytales, and which is unlikely to end with a happily ever after.
To anon 8.51am
Plant a walnut tree, nurture it and watch it grow and deliver its bounty year after year for generations to come.
Re Annon 23 Jun 09:26
What are you jabbering about walnuts?
1,500 dollars would be better spent on child health and education rather than locking it away for 65 years where there is no guarantee said sprog will live that long anyway.
We should not let soppy sentiment get in the way of reality.
It is only once a citizen starts paying tax do they contribute and successfully gestating in a womb should not be considered some sort of achievement that deserves a cash bonus.
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