Guest Post: Can governments really force people to save more?....

......Do Australians save more than Kiwis?

A guest post on Kiwiblog by Michael Littlewood:

It’s difficult to compare countries’ retirement income systems but, in a new report, I have tried, as I describe the differences and similarities between New Zealand and Australia. We hear a great deal about Australia, probably because most of our financial service providers are Australian-owned and their own incomes reflect funds under their management.

Guest Post: Time to change the record?

A guest post by Michael Littlewood on Kiwiblog.

Is anyone else a little tired of articles that tell us we aren’t saving enough for our retirement, or that the country can’t afford New Zealand Superannuation (NZS)? Most seem fuelled by KiwiSaver providers or financial advisers who tell us we don’t know what we are doing; also that we need the government to force us out of our apparent indifference. Or even that the financial sky is falling in, or will be.

Instead of acting as the voice for financial service providers, why don’t reporters do some research; ask some questions; demand answers?

Guest Post: On the long-term costs of New Zealand Superannuation: more affordable now?

A guest post on Kiwiblog by Michael Littlewood:

As New Zealand’s population ages and, in particular, as the proportion of over-65s increases, the cost of New Zealand Superannuation (NZS) is rising. We know that and it doesn’t help us understand the issues to create headlines that catastrophise the expected costs.

The pensions payable in the future, public and private, will be claims on tomorrow’s economy, so the best way to express the expected cost of NZS is as a proportion of tomorrow’s economy. At present, this is probably best measured by the Gross Domestic Product (GDP). This is not a perfect measure, given the number of factors that bear on its calculation, particularly for long periods into the future. But it’s the best we have.

Guest Post: KiwiSaver, the employment contract and Budget 2025

A guest post on Kiwiblog by Michael Littlewood:

KiwiSaver is about to change again. The Budget announced an increase in the minimum employee contribution (from 3% to 4%) over three years and in the matching minimum contributions paid by employers.

The government is also cutting its own contribution from a 50% match to the first $1,042.86 of members’ contributions to 25%. So, the maximum taxpayer subsidy drops from $521.43 a year to $260.72. It will also be income-tested so that the highest paid employees (receiving more than $180,000 will lose that.

Guest Post: Ten principles relating to pension reform

A guest post on Kiwiblog by Michael Littlewood:

New Zealand has an aging population. We need to talk about that but we can’t yet because we don’t know enough about what New Zealanders are doing.

There are some things that we can get straight in preparation for that debate. The following ten principles may help.

Guest Post: KiwiSaver – is it ‘working’?

A guest post on Kiwiblog by Michael Littlewood.

So, John Horner of the Financial Markets Authority thinks that KiwiSaver’s reaching $100 bn “…is something to celebrate; for a relatively small country like New Zealand, it represents a coming of age of KiwiSaver.” (FMA 24 September 2024 here). Others in the financial services industry praise KiwiSaver while some call for higher minimum contributions or even for it to be made compulsory. So, is $100 bn saved through KiwiSaver that big a deal?