tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Friday, April 3rd, 11:04AM

Investments

rss
Latest Headlines

Increase Govt KiwiSaver contribution: Commission

Almost quadrupling the value of the Government's member tax credit for KiwiSaver members might get more self-employed people contributing, the Retirement Commissioner says.

Tuesday, October 29th 2019, 5:00AM 1 Comment

Peter Cordtz

Acting commissioner Peter Cordtz is working towards the completion of the three-yearly review of income policies.

A working group undertaking research for the review said increasing the credit from $521 for every $1,042 contributed a year, so that savers could receive a maximum $2,000, might help boost contribution rates.

While most New Zealand adults are KiwiSaver members, many are not contributing much.

Those who receive no employer contributions may see less value in the scheme.

Commission for Financial Capability research showed only 40% of self-employed people were contributing to KiwiSaver compared to 73% of workers employed full-time.

One in 20 employed New Zealanders is now a contractor, one in 10 has more than one job, and only 38% of employees have been in the same job for five or more years.

The group said KiwiSaver members could receive 50c for every dollar up to $521 then $2 for every dollar up to $1,000,

"This would give members an extra $3,000 in their accounts each year – $1,000 of their own money and $2,000 from the Government," said Tom Hartmann, Sorted editor, who is leading the group.

“Dialing up the Government contribution would level the playing field between employed and self-employed workers, and those out of the workforce, and add extra incentive for members to put in enough to gain the Government matcher each year.”

Cordtz said the idea was worthy of discussion.

“We’re keen to find ways to make the KiwiSaver structure as fair and attractive as possible to all New Zealanders, whether they’re in paid employment, self-employed or taking time out of the workforce,” he said.

“This suggestion could encourage a wider range of people to save more towards their retirement.”

Cordtz will consider the proposal along with public feedback and submissions before deciding on which recommendations to include in his report to Government in December.

Public submissions are open until October 31.

Tags: Commission for Financial Capability KiwiSaver Retirement Commissioner

« FMA: Time to show what KiwiSaver members get for feesInvestors prepared to switch for ethical funds, report shows »

Special Offers

Comments from our readers

On 29 October 2019 at 1:44 pm Rob Dowler said:
If the goal is to make KiwiSaver as fair and attractive as possible, why not simplify the scheme to the point where the government, and only the government, makes all of the contributions at the same level for everyone.

Wait a minute. Isn't that exactly what universal NZ Superannuation payments do? So what is the point of KiwiSaver again?

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • Covid withdrawals possible 'but not always desirable'
    “Just signing in to agree with @richardjames....”
    4 hours ago by Denis
  • Covid withdrawals possible 'but not always desirable'
    “Murray et al The following is an email I sent to Grant Robertson 10 days ago... Hi Grant Firstly, well done to you and...”
    6 hours ago by Richard James
  • Advisers 'will drop out'
    “@gavin austin - actually our focus is on getting Advisers to ask their existing customers "What can we do to help you?"...”
    17 hours ago by Andrew Scott GM Newpark
  • Advisers 'will drop out'
    “Interesting comments Andrew. I take it from your comment about Dgs being worth their salt that you've provided your members...”
    20 hours ago by gavin austin adviser business compliance
  • AML flexibility offered
    “AML flexibility is great and well received. What are the law society and the JP organisation doing to find ways to reduce...”
    21 hours ago by Tony Walker
Subscribe Now

News and information about KiwiSaver

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.55 3.55 3.89 3.99
AIA Special - 3.05 3.39 3.69
ANZ 4.44 3.55 3.85 4.49
ANZ Special - 3.05 3.35 3.99
ASB Bank 4.45 3.55 3.89 3.99
ASB Bank Special - 3.05 3.39 3.69
Bluestone 4.44 4.44 4.29 4.34
BNZ - Classic - 3.09 3.35 3.69
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 3.75 4.10 4.55
Lender Flt 1yr 2yr 3yr
BNZ - TotalMoney 4.55 - - -
China Construction Bank 5.50 4.70 4.80 4.95
China Construction Bank Special - 3.15 3.15 3.19
Credit Union Auckland 5.95 - - -
Credit Union Baywide 5.65 4.75 4.75 -
Credit Union North 6.45 - - -
Credit Union South 5.65 4.75 4.75 -
Finance Direct - - - -
First Credit Union 5.85 3.99 4.49 -
Heartland 3.95 2.89 2.97 3.39
Heartland Bank - Online - - - -
Lender Flt 1yr 2yr 3yr
Heretaunga Building Society 4.99 4.35 4.45 -
HSBC Premier 4.49 2.95 3.09 3.50
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 5.15 3.18 3.18 3.20
Kainga Ora 5.18 3.94 4.08 4.39
Kiwibank 4.40 3.84 4.14 4.40
Kiwibank - Capped - - - -
Kiwibank - Offset 4.40 - - -
Kiwibank Special - 3.09 3.39 3.65
Liberty 5.69 - - -
Lender Flt 1yr 2yr 3yr
Napier Building Society - - - -
Nelson Building Society 4.95 ▼4.09 4.15 -
Pepper Money Near Prime 5.64 - 5.44 5.44
Pepper Money Prime 5.18 - 4.98 4.98
Pepper Money Specialist 7.59 - 7.39 7.39
Resimac 4.50 4.45 3.89 3.94
RESIMAC Special - - - -
SBS Bank 4.54 4.85 5.05 5.49
SBS Bank Special - ▼3.09 ▼3.39 ▼3.69
The Co-operative Bank - Owner Occ 4.40 3.25 3.45 3.69
The Co-operative Bank - Standard 4.40 3.75 3.85 4.19
Lender Flt 1yr 2yr 3yr
TSB Bank 5.34 3.89 4.15 4.49
TSB Special 4.54 3.09 3.35 3.69
Wairarapa Building Society 4.99 3.95 3.99 -
Westpac 4.59 4.15 4.09 4.49
Westpac - Offset 4.59 - - -
Westpac Special - 3.09 3.39 3.69
Median 4.60 3.65 3.89 3.99

Last updated: 31 March 2020 8:55am

News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com