I’m with the KiwiSaver providers who are saying we need to go further than just increasing contributions and we need to make them compulsory.

This is after the announcement by the National Party yesterday that one of its election policies next year will be increasing contributions to 12 percent (6 percent from employers and 6 percent from employees) by 2032, to bring us into line with Australia.

KiwiSaver providers are saying today that they’re liking the policy - but the calls are already coming for it to be made compulsory.

Across the Tasman, it’s compulsory for employers to contribute - but not for workers.

National says it’s not in favour of making any contributions compulsory. NZ First is, though.

So does Sam Stubbs, who is managing director of Simplicity.

He’s saying that it has to be compulsory because we have to make sure everybody is saving for their retirement while they're working. And the only way to do that is to make it compulsory. Who can argue with that?

He says: "Those people who aren't saving into KiwiSaver are going to be much worse off later on in life. So if we want to remove inequality in New Zealand, and we don't like inequality in New Zealand, we have to make sure that everybody is saving for their retirement while they're earning.”

Compulsory KiwiSaver contributions are also going to be essential with any changes to the contribution rates, as National is proposing. Because some people who are paying three percent now won‘t want to pay six percent and so they’ll pull out.

And the only way to stop that, is to make it compulsory.

LISTEN ABOVE

I’m with the KiwiSaver providers who are saying we need to go further than just increasing contributions and we need to make them compulsory.
This is after the announcement by the National Party yesterday that one of its election policies next year will be increasing contributions to 12 percent (6 percent from employers and 6 percent from employees) by 2032, to bring us into line with Australia.
KiwiSaver providers are saying today that they’re liking the policy - but the calls are already coming for it to be made compulsory.
Across the Tasman, it’s compulsory for employers to contribute - but not for workers.
National says it’s not in favour of making any contributions compulsory. NZ First is, though.
So does Sam Stubbs, who is managing director of Simplicity.
He’s saying that it has to be compulsory because we have to make sure everybody is saving for their retirement while they're working. And the only way to do that is to make it compulsory. Who can argue with that?
He says: "Those people who aren't saving into KiwiSaver are going to be much worse off later on in life. So if we want to remove inequality in New Zealand, and we don't like inequality in New Zealand, we have to make sure that everybody is saving for their retirement while they're earning.”
Compulsory KiwiSaver contributions are also going to be essential with any changes to the contribution rates, as National is proposing. Because some people who are paying three percent now won‘t want to pay six percent and so they’ll pull out.
And the only way to stop that, is to make it compulsory.
LISTEN ABOVE

Every weekday join the new voice of local issues on Canterbury Mornings with John MacDonald, 9am-12pm weekdays.

It’s all about the conversation with John, as he gets right into the things that get our community talking.

If it’s news you’re after, backing John is the combined power of the Newstalk ZB and New Zealand Herald news teams. Meaning when it comes to covering breaking news – you will not beat local radio.

With two decades experience in communications based in Christchurch, John also has a deep understanding of and connections to the Christchurch and Canterbury commercial sector.

Newstalk ZB Canterbury Mornings 9am-12pm with John MacDonald on 100.1FM and iHeartRadio.

Every weekday join the new voice of local issues on Canterbury Mornings with John MacDonald, 9am-12pm weekdays. It’s all about the conversation with John, as he gets right into the things that get our community talking. If it’s news you’re after, backing John is the combined power of the Newstalk ZB and New Zealand Herald news teams. Meaning when it comes to covering breaking news – you will not beat local radio. With two decades experience in communications based in Christchurch, John also has a deep understanding of and connections to the Christchurch and Canterbury commercial sector. Newstalk ZB Canterbury Mornings 9am-12pm with John MacDonald on 100.1FM and iHeartRadio.

Every weekday join the new voice of local issues on Canterbury Mornings with John MacDonald, 9am-12pm weekdays.It’s all about the conversation with John, as he gets right into the things that get our community talking.

Canterbury Mornings with John MacDonald

John MacDonald: We need to go further with Kiwisaver

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/52aa113b-dd27-4390-bffe-b39e01872e6a/transcript