Good to see the government considering a move that would significantly boost KiwisSaver uptake:
KiwiSaver auto-enrolment: the new election issue
The Government is pushing policies that could see up to a million New Zealanders automatically enrolled in Kiwisaver, and the superannuation scheme is shaping up to be a big election issue. …
National is considering automatic enrolment, which would mean signing up the 1 million workers currently not in KiwiSaver and leaving it up to them to opt out. Prime Minister John Key says he expects more people might stay in the scheme if they were automatically enrolled. ….Mr Key says is worth it in the long term. “It gives New Zealand a stronger economic position, and I think that’s a good thing.”
So – the principle of automatic enrolment with the option to opt out is a good one. Well worth considering for Kiwisaver. Though oddly enough, not in the case of student unions, where this principle is so evil that it must be stamped out at all costs! Inconsistent much? Hmmmmm.
Returning to superannuation, from the same piece above:
Mainfreight managing director Don Braid says “it’s time” to move to compulsory superannuation in New Zealand, and says “either Labour or National should just get off their butts and make it compulsory”. He says compulsory superannuation would increase the capital New Zealand can invest in its own companies and help cover the costs of an aging population.
I agree, it’s time. Future tax payers will face an enormous burden to support our ageing population. We should all be contributing now as best we can in preparation. National has already undermined both the Cullen Fund and Kiwisaver, they’re clearly not looking to the future. As usual it is up to Labour. I’d like to see Labour adopt this as policy for the election. If we’re going to run on facing up to the hard decisions (e.g. capital gains tax) then let’s not be half hearted about it!