Hon Dr Michael Cullen
Minister of Finance

1 July 2007 Media Statement
Embargoed until 1pm

Making easy work of saving – KiwiSaver takes off

From today New Zealanders have the best chance in a generation to start securing the retirement they deserve, Finance Minister Michael Cullen said today.

"The official launch of KiwiSaver today means more New Zealanders will now have the chance to build a substantial pool of their own savings to call on when they retire," Dr Cullen said.

"More New Zealanders will share in the wealth we create, more capital will be available to help Kiwi businesses expand with Kiwi savings.

"KiwiSaver makes easy work of saving. The government is supporting saving with a $1000 kickstart and a $20 a week tax credit for savers – or $1040 each year. Employers will have to match contributions (phased in over four years), offset by a $20 a week tax credit. This means you can save far more than on your own.

"KiwiSaver makes it much easier for those on modest incomes to build up a nest egg for retirement and it will help many New Zealanders buy their first home.

"I am pleased there has been so much support among employers and the savings industry. Savers will have a wide choice of fund managers. At the moment there are 20 registered scheme providers.

"KiwiSavers should also be assured that current regulations provide a comprehensive level of protection for members of superannuation schemes.

"KiwiSaver will be good for families, good for businesses, good for our future prosperity.

"I challenge National to front up to voters now about its KiwiSaver policy. Thousands of workers are about to make critical long term decisions and they deserve to know what will happen to KiwiSaver if National becomes government.

"John Key and Bill English have ducked repeated questions on this.

"Remember it was a National government that illegally scrapped a Labour government superannuation scheme in 1975 and a National government of which Bill English was a Minister that cut the annual adjustment to New Zealand Superannuation to 60 per cent of the average wage.

"The Labour-led government restored the safety net of New Zealand Superannuation and is building up the New Zealand Superannuation Fund to help secure NZ Super for future generations. Now with KiwiSaver we are giving New Zealanders confidence that can enjoy the standard of living they deserve when retired.

"Unlike National, Labour has made it a priority to help ordinary families get ahead, to help children get the best start in life.

"Only Labour guarantees Working for Families, cheaper doctor visits for all New Zealanders, 20 hours free early childhood education, universal superannuation and now KiwiSaver – all core Labour policies, making a difference to the lives of New Zealand families, today and tomorrow."

Further information is available at:
http://www.kiwisaver.govt.nz/

The Retirement Commission's "Sorted" website helps people make decisions about KiwiSaver by calculating how much they are likely to receive at age 65:
http://www.sorted.org.nz/calculators/kiwisaver-quick-calc/page1.php

ENDS

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