KiwiSaver Budget comments welcome

3 May 2012

KiwiSaver Budget comments welcome

Workplace Savings NZ has welcomed comments from the Government that indicates there will be no changes to KiwiSaver Tax credits in this year's Budget.

The announcement was made by Prime Minister John Key.

Workplace Savings NZ Chair David Ireland says the certainty that message provides will come as a welcome relief to all those involved in workplace savings.

"Since it was first established, KiwiSaver has been subject to 'design tinkering' in just about every Budget, so this will be a refreshing change.

"It means the only change KiwiSavers are likely to see on the horizon, at a practical level, is the proposed increase in contribution rates from 1 April next year."

At that point, the minimum employee and employer contribution is set to rise from 2% to 3%.

"There are currently over 1.9m New Zealanders using KiwiSaver for their savings, and they should be reassured by the Government's announcement.”

KiwiSaver is about to enter a new stage in its life cycle, with those aged 65 or over who joined on day one becoming eligible to withdraw their savings on 1 July.

"The stability signalled in KiwiSaver incentives and design is great news. It will help free up providers' capacity to develop options for helping those KiwiSavers maximize the long term benefit of those savings," says Mr Ireland.

Workplace Savings NZ is the voice of workplace savings in New Zealand. It is a national, not-for-profit, apolitical membership organisation whose mission is to advance the sustainable, effective, and efficient delivery of workplace savings outcomes for all involved. Workplace Savings NZ members manage or advise on the bulk of the $25 billion in workplace retirement savings assets (as at September 2011).

ENDS

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