"We are delighted that the Prime Minister has agreed to implement compulsory KiwiSaver if re-elected in this year’s election."
"For the past few years, we have been advocating for compulsory savings through our opinion pieces, public commentary, and Leonard's postgraduate research from Singapore. We saw it as one of the most compelling macroeconomic policies that can help New Zealand become a rich, asset-owning country with deeper domestic capital markets and a stronger external position."
"The lesson from Australia’s compulsory superannuation system and Singapore’s Central Provident Fund is clear: mandatory savings can deepen capital markets, reduce the long-term fiscal burden of public pensions, and create pools of capital that support investment in national development."
"As presciently analysed by former Reserve Bank Governor Graeme Wheeler, New Zealand has for too long relied on housing wealth, high immigration, international tourism, and primary sector exports as the main engines of growth since the 2008 Global Financial Crisis. That model is no longer enough."
"In contrast to economic policies advocated by libertarians, New Zealand needs a comprehensive economic strategy to diversify its economy, and one approach is to develop greater domestic capital and expand public assets, including KiwiSaver and the New Zealand Superannuation Fund."
"The National Party’s commitment to KiwiSaver development signals an important shift in economic thinking. It recognises that New Zealand cannot build long-term prosperity under the status quo of heavy reliance on foreign capital, house price inflation, and chronically low household savings."
"For a centre-right government to accept compulsory KiwiSaver is a major philosophical shift. It recognises that personal responsibility sometimes requires strong institutions and pragmatic paternalism to incentivise higher capital accumulation."
"This unorthodox economic approach provides a more seamless pathway out of a fiscal crisis, and in stark contrast to rapid increases in taxation, monetisation of public debt, or harsh fiscal austerity measures."
"Today’s announcement by the Prime Minister is not the end of that debate, but it may be the start of a new economic consensus."
9 comments:
I’m not happy with compulsory kiwisaver for the reason that it is effectively another tax that you may never see a return on given the long-con that is the money as debt-based fractional reserve banking system will blow up eventually and very likely in our lifetimes.
The Mercedes salesmen will be rubbing their hands with glee. All those milking the system as official 'investment suppiers' will be on the phone upgrading.
The whole thing is a sort to force us to hand over a percentage for nothing. Fix that part and I might be more supportive.
No to compulsion. Try being self employed or even being an employer.
Surely it’s just a redirection of funds government were/are spending anyway, just broken into little bits each with someone’s name on it, rather than unaccountably spent as an amorphous blob
Introducing compulsory super is not effectively another tax. The additional savings required from low and middle earners can be funded from less taxes paid by cuts in corporate welfare & transfers to wealthy households. Over time, compulsory super will mean lower taxes without need for capital or wealth taxes nor increases in GST and income taxes, as there is less pressure on the public purse from the ageing population. In Australia, the public pension draws only around 2-3% of GDP and dropping to 2%, whereas before the PM's announcement it was forecast to go to 8% in NZ. For how it can be implemented, you can read a plan that I worked on here (or go ask Sir Paul Keating in Australia,) =
https://www.tandfonline.com/doi/full/10.1080/00779954.2025.2496872
Yippee, Welcome back Prof MacCulloch, your esteemed commentary on all matters has been missed, do not let the naysayers & backstabbers get to you.
Have to agree with Anon 8:31am. Given that the prospects for any NZ government to ever 'balance the books' seems slim, and ability pay down debt not even on their radar, the trajectory of the NZD, along with that of global fiat currencies is down the toilet with ultimate reckoning probably no more than five years away. A bird in the hand is worth two in the bush! 40-years away today must seem like a lot longer than it did 40-years ago given the rate of collapse is now evident to most. More legacy thinking from the Nats..
Anon 8.31's. comment is typical of the ignorance surrounding KiwiSaver. It is not a tax. It is comulsory savings that are in both your own self interest and the interests of the country, a combination that does not arise very often. The fact of the matter is that with average life expectacy north of 82, National Superannuation in its current form is unsustainable, yet people simply cannot be trusted to save for their own retirement. And the comment on the potential returns is just plain silly and shows a profound ignorance of how the banking system and funds management industry actually works.
I agree with the idea of compulsory saving for retirement and the wealth fund that results, however, the government mandated monopoly Kiwi saver should not be the only option. There should be room for authorised, private, secured savings plans with similar Employer support.
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