web analytics

Kiwisaver breaks half a million

Written By: - Date published: 4:37 pm, March 25th, 2008 - 17 comments
Categories: election 2008, wages - Tags: ,

Congratulations to Kiwisaver’s 500,000th member, baby Remy Van Cruysen, whose parents, Jules and Megan, signed him up today. By the time Remy is an adult he will have a nest-egg worth $49,000 in today’s money.

Kiwisaver has been enormously popular. People have signed up at twice the expected rate 500,000 have joined in less than eight months, Treasury projected only 270,000 for the while first year. The combination of contributions from members and the Government have already seen the savings in Kiwisaver accounts top $1 billion, and that will accelerate as people continue to join up and employer contributions kick in from April 1.

The only fly in the ointment is that National still refuses to tell us whether they would change Kiwisavers’ rules. National has said it would keep the scheme but is mute on whether it would retain employer contributions and the current level of government contributions. These are vital parts of Kiwisaver’s attraction and people need to know whether they will continue when planning for their retirement.

With one in six working age New Zealanders already Kiwisavers and more joining every day, it is time for National to grow up and stop playing political games with kiwis’ futures.

17 comments on “Kiwisaver breaks half a million ”

  1. higherstandard 1

    sp

    I think you can assme that the nat’s won’t tinker with Kiwisaver. You might even be surprised that Key said in a recent interview that of the current Labour Caucus that he thought Michael Cullen would probably be remembered most positively in a hitorical perspective because of Kiwisaver.

  2. Dan 2

    The lack of any policies from the Nats speaks volumes. NZers deserve an opposition. The National party have had nine years in opposition, yet have no clear point of difference on anything! In other words, Labour leads the way, and the Nats follow.
    The only question mark are their unspoken agendas, and they will show as we near election day.
    Well done Michael Cullen. You have transformed savings perceptions.

  3. Draco TB 3

    In other words, Labour leads the way, and the Nats follow.

    That’s been true ever since WWII. National has put in place very few policies in relation to Labour and quite often they’ve been disastrous rather than beneficial. National is the arch-conservative party – it keeps what’s working and doesn’t like to change things.

  4. Up next on National TV we continue the series of DOG WISTLE POLITICS!!!

  5. Phil 5

    Draco, you’re forgetting the Fiscal Responsibility Act, probably the single most important piece of legislation (of a budgetary nature) in New Zealands history.

  6. John 6

    Hey Higher

    What evidence do you have that the Nats won’t make any changes to Kiwisaver? They certainly haven’t made any statements to that effect. In fact, when pushed they have been pretty cagey in their responses.

    Slippery John saying nice things about Michael Cullen is not a guarantee of the continuation of the $1,000 initial government contribution or the employer contribution or the tax aspects of the Kiwisaver plan.

    Nice words without a clear policy leaves a lot of wiggle room for Slippery John and his buddies.

  7. Murray 7

    I joined Kiwisaver for one reason and one reason only, free money.
    Accepting it makes me feel like a Labour supporter but I’ll get over it.

  8. All Tory voters should on principle refuse to accept the Government KiwiSaver handout. Or have they no morals?
    Personally, I won’t join up soon. I simply can’t afford it what with rising mortgages and CPI inflation, and having to pay for other people’s lifestyles such as Working For Families. Somebody has to pay those bills and unfortunately, it’s me.

  9. lprent 9

    “…the Fiscal Responsibility Act, probably the single most important piece of legislation (of a budgetary nature) in New Zealands history.”

    I’d agree. One of the most effective acts in the last 30 years (in terms of impact) because it shifted the underlying basis of government accounting towards an accrual accounting base.

    It is a pity that political parties are not required to cost their policies on the same basis.

  10. Vic 10

    Uroskin, are you actually saving for retirement like a good Tory would? It’s not like we’ve got full Super to fall back on these days. Sounds almost like you’re refusing to on principle, but then you say you can’t afford it. Even if you could have it both ways, NZ’s fiscal and economic policies and our economy are obviously going to change quite a bit before you draw on any savings – maybe you should reprioritise to give yourself the flexibility to save now, given that all the factors you’ve mentioned are likely to fluctuate over your lifetime? It’s free money. Why cut off your nose?

  11. Hey Steve
    It’s great to see some genuinely positive coverage of what was supposed to be a positive thing. I am saddened by how cynical the media coverage of the event was. As a parent I want Remy to be in a better position I was and thats why we are doing it. It wasn’t about trying to get free money from the government or even a shameless Labour publicity stunt (as is often inferred by the comments about my politics – of course I am a Labour supporter – if I wasn’t why would I show up to a photo shoot with the PM). Anyway, Thank you!

  12. Uroskin 12

    Vic: Yes, I joined a private super savings scheme about 10 years ago – when it didn’t attract Government subsidy or a tax deduction – but had to stop contributing as other spending started to take priority, such as paying an amazing 5% real interest rate on my mortgage (interest rate minus inflation rate) this must be about the highest rate in the world!
    If only the Government would reward my earlier frugality and foresight by making past private pension contributions eligible for the Kiwisaver handouts, but I’m not holding my breath.
    besides paying off your mortgage should be your first priority, we don’t all want to be renters, sub-prime defaulters or be forced into a mortgagee sale.

  13. Steve Pierson 13

    Cheers, Jules.

    I listened to the whole recording on scoop and thought it was great – both Clark and Cullen seemed to be having a good time, and it’s a shame we don’t see more of them in that relaxed context.

    Yeah, and annoying how they make a big deal over you being a former member of Labour, especially as your partner isn’t. Not like you’re party activists, and as Cullen pointed out, Remy is just one of 500,000 New Zealanders who have joined – can’t all be Labour members.

  14. Vic 14

    Well – yeah. I haven’t even got to the point of having a deposit to put on a house. I’m going the Kiwisaver route on this and hoping I find a moderate earner to shack up with later cause there’s no way I could do a mortgauge alone, now or probably ever. Are you saying though, that you wish the government would be more generous in its allocation of cash and add in a bit of retrospective funding for private schemes? Are you sure you’re not harbouring a bit of lefty predisposition in there somewhere?

  15. Uroskin 15

    Vic: I just wish there was a level-playing field in tax treatments of savings and investments. I mean, why do I have to pay tax on my private pension plan and any other saving accounts while the Government gives KiwiSaver subsidies? Saving through paying off your house is more tax effective in many cases (compared to other savings mechanisms) as there is no capital gains tax, and rental investments are basically tax subsidised vehicles for the middle classes since any “losses” are tax-deductible, but renting people can’t claim their rent payments against their tax.
    I’d be quite happy if part of my current tax was ring-fenced in a personal pension plan instead of having to fork out another 4 or 8% of my gross income (despite the Government bribe). If the aim was to encourage saving more there should be more imaginative schemes. As it is now Kiwisaver is a taxpayer subsidy to people without mortgages, jobs or a life.

  16. Steve Pierson 16

    uroskin. to get the govt subsidies etc, super plans have to meet a set of criteria, the one I can remember straight off is no withdrawals (except the mortgage exception) until 65. If your plan converts itself to a Kiwisaver approved plan it will get the rewards.

  17. Matthew Pilott 17

    uroskin, are you saying that contributing 4% of your income will deny anyone a life? I thought it was a mortgage that did that, not kiwisaver..

    Actually, your last comment makes no sense at all – people with mortgages maybe, but I can’t see it as a subsidy for people without jobs – they’re usually more concerned with getting a job than saving for a retirement you know…

Recent Comments

Recent Posts

  • Arts and heritage venues get helping hand
    A new round of funding to support capital projects will help keep our arts and heritage sector alive and vibrant, Associate Minister for Arts, Culture and Heritage Kiri Allan announced today.  “Communities work hard to raise funds for arts, culture and heritage related capital projects as they add significant value ...
    BeehiveBy beehive.govt.nz
    4 hours ago
  • Foreign Ministers welcome opening of New Zealand High Commission in Colombo
    New Zealand and Sri Lanka’s Foreign Ministers, Nanaia Mahuta and Dinesh Gunawardena, have welcomed the opening of the New Zealand High Commission in Colombo next week. The Foreign Ministers, who met virtually yesterday, spoke about the opening of the High Commission as a major milestone in the bilateral relationship. Both ...
    BeehiveBy beehive.govt.nz
    4 hours ago
  • New Zealand to increase NZDF commitment to the United Nations Command, Republic of Korea
      The New Zealand Defence Force (NZDF) will deploy three additional personnel to the Republic of Korea, increasing the size of its contribution to the United Nations Command and its Military Armistice Commission from nine to 12 personnel. “Increasing the size of our deployment to the Republic of Korea ...
    BeehiveBy beehive.govt.nz
    8 hours ago
  • Wages up, unemployment down
    The Government’s efforts to secure the recovery has seen more Kiwis in jobs and higher wages, with unemployment falling to pre-COVID levels and more people in work. Stats NZ figures show unemployment rate fell to 4 percent in the June quarter from 4.6 percent in the March quarter, the lowest ...
    BeehiveBy beehive.govt.nz
    8 hours ago
  • Poroporoaki: Dr Kihi Ngatai OSM
    Mauao tiketike tūmokemoke mai ana ra koe, papakitia ana e ngā tai kawenga roimata o te motu. E Ngāti Ranginui, mo tō manuhuia kua tīkapea i te rangi. E Ngai Te Rangi, mo tō manutaki kua riro i te hau o Aitū kikini, E Ngāti Pukenga mo tō manutaiko, kua ...
    BeehiveBy beehive.govt.nz
    9 hours ago
  • Government support screen industry with funding for sound stages in West Auckland
    Auckland Film Studios in West Auckland has received funding for a major expansion through the Government’s Infrastructure Reference Group’s (IRG) COVID-19 Response Fund. The Government is investing $30 million of a total $35 million project to construct two 2,000sqm sound stages and development of further workshops and offices, to expand ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Protecting unique land for generation next
    The Government is boosting legal protection for critically important natural habitats on private land, Minister of Conservation Kiri Allan says. “An $8 million investment over four years will see Queen Elizabeth II National Trust Ngā Kairauhī Papa (QEII) work with government agencies, councils and others to provide legal protection of ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • New Zealand’s support for Fiji’s COVID-19 response continues with vaccine delivery, operational ...
    Foreign Minister Nanaia Mahuta has announced further support for Fiji, including funding support for nursing staff and 100,000 doses of vaccines due to arrive in country today. “Our thoughts remain with Fiji during this incredibly challenging period,” Nanaia Mahuta said. “New Zealand has funded 100,000 doses of the AstraZeneca vaccine ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Poroporoaki: Dr Hōhepa (Joe) Mason
    Ko koe tēnā e te hurumanu e Hōhepa, te tōwenetanga a te iti, te māpihi herenga mahara o te tini, ka tauawhi tonuhia koe e to iwi ki te uma pupuri ai. Me pēhea he kupu kia koutou kua puta i nga ākinga a nga tau kua hori, kua waia ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Finance Minister and RBNZ Governor agree to update MOU on macro-prudential policy
    Finance Minister Grant Robertson and Reserve Bank Governor Adrian Orr have updated the Memorandum of Understanding (MoU) on macro-prudential policy to further protect the financial system and support the Government’s housing objectives. “This change will ensure that the Reserve Bank has the flexibility to respond to emerging financial stability risks ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Government commits further assistance for drought and flood-affected rural communities
    Farmers and growers affected by this year’s drought or floods in Marlborough, Tasman, West Coat, Canterbury, Otago and the Chatham Islands will have access to Rural Assistance Payments (RAPs) from today, Social Development and Employment Minister Carmel Sepuloni has announced. “The Government is committed to easing the financial pressures on ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Cook Islands youth lead Language Week
    The Cook Islands Language Week theme for 2021 highlights the vital role language plays in maintaining young people’s links to their Pacific home, said Minister for Pacific Peoples Aupito William Sio.  “The Epetoma o te reo Māori Kūki ‘Āirani – Cook Islands Language Week – theme is ‘Ātuitui’ia au ki ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Government offers formal apology for Dawn Raids
    A formal and unreserved apology for the Dawn Raids The Government will offer education scholarships as part of the apology Manaaki New Zealand Short Term Scholarship Training courses Support Pacific artists and historians to develop a comprehensive written and oral account of the Dawn Raids Prime Minister Jacinda Ardern has ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Speech to Dawn Raids Apology
    Tēnā koutou katoa, Kia orana kotou katoatoa, Fakaalofa lahi atu ki mutolu oti, Tālofa nī, Mālō nī koutou, Ni sa bula vinaka, Fakatalofa atu, Noa'ia 'e mauri, Kam na mauri, Malo e lelei, Sioto'ofa, Mālō lava le lagi e mamā ma le soifua maua, Oue tulou, tulou atu, tulouna lava ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Bridging the gap – last piece of Northcote Safe Cycle Route now complete
    The opening of two bridges over Auckland’s Northern Motorway is the last link of a cycling and walking route which provides a safe, active alternative for students and commuters, Transport Minister Michael Wood said today. Michael Wood cut the ribbon for the completion of the Northcote Safe Cycle Route, at ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Progress in establishment of Aged Care Commissioner
    Recruitment for an Aged Care Commissioner will start next month, to ensure greater oversight of New Zealand’s aged care sector. “This sector is responsible for supporting a large and often vulnerable population. While most people are able to access quality care, there have been cases where that care has fallen ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • New record number of homes consented
    In the year ended June 2021, the actual number of new dwellings consented was 44,299, up 18 percent from the June 2020 year. In June 2021, the seasonally adjusted number of new dwellings consented rose 3.8 percent. In June 2021, 4,310 new dwellings were consented, an increase of 3.8 per ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Communities backed to tackle wilding pines
    Twelve community projects across New Zealand will receive a share of $2 million to carry out wilding pine control, Biosecurity Minister Damien O’Connor announced as part of Biosecurity Week. “Wilding pines are a serious problem that threaten many of the unique landscapes that New Zealanders value. Community groups and trusts ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Health Minister Andrew Little responding to the New Zealand Nurses Organisation's rejection of ...
    I was advised last night that the result of the ballot of Tōpūtanga Tapuhi Kaitiaki o Aotearoa New Zealand Nurses Organisation members have rejected the latest proposal to settle their collective agreement. Let me be clear: the proposal was one they put to the Government. The Nurses Organisation rejected their ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Conversion Practices Prohibition Legislation introduced to Parliament
    Legislation has been introduced to Parliament to protect against practices intended to change or suppress someone’s sexual orientation, gender identity, or gender expression. Introducing the Conversion Practices Prohibition Legislation Bill, Minister of Justice, Kris Faafoi, said the measures proposed were aimed at ending conversion practices which don’t work, are widely ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • New kaupapa Māori mental health and addiction services to support people in central North Island
    New mental health and addiction services rolling out across the central North Island will improve outcomes and equity for Māori, Associate Minister of Health (Māori Health) Peeni Henare says. Today the Minister met with providers of the new kaupapa Māori primary mental health and addiction service, Poutama Ora, which will ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • New school site for booming West Auckland
    The Government will build on a new school site in West Auckland to cope with rapid population growth in the area, Education Minister Chris Hipkins says. The Ministry is working with existing local schools to determine how the 1.5-hectare site at 279 Hobsonville Point Road will be used to support ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Trans-Tasman travel window to close at midnight tomorrow
    A further 500 MIQ rooms released for managed returnees from NSW Further Government actions announced today are balanced to provide more certainty for Kiwis wanting to return from Australia, while continuing to protect New Zealand from COVID-19, acting Minister for COVID-19 Response Ayesha Verrall says. The actions were foreshadowed last ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Govt investing millions in Hawke's Bay and Tairāwhiti schools
    Napier Boys’ and Girls’ High Schools are among those set to benefit from a $16.5 million investment in the Hawke's Bay and Tairāwhiti region, Economic and Regional Development Minister Stuart Nash announced today. The Government has set aside money in Budget 2021 to accelerate five projects in Napier, Hastings, Havelock North ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Game changing Jobs for Nature investment for Northland
    Conservation Minister Kiri Allan has announced Jobs for Nature funding for a portfolio of projects that will create ‘game changing’ gains for nature and communities across Northland/Te Tai Tokerau as part of the Government’s acceleration of the economic recovery from COVID. “This portfolio of 12 projects will see over $20 ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Third COVID-19 vaccine receives provisional approval
    New Zealand’s regulatory authority Medsafe has granted provisional approval of the AstraZeneca COVID-19 vaccine for individuals 18 years of age and older, Acting Minister for COVID-19 Response Dr Ayesha Verrall announced today. New Zealand secured 7.6 million doses (enough for 3.8 million people) of the AstraZeneca COVID-19 vaccine through an ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Bowel-cancer screening programme is saving lives
    More than 1000 New Zealanders have had bowel cancer – New Zealand’s second-most-common cause of death from cancer - detected under the Government’s National Bowel Screening Programme, Health Minister Andrew Little said today. More than 1200 New Zealanders died from bowel cancer in 2017. The screening programme aims to save ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Govt welcomes draft report on the retail grocery sector
    The Commerce Commission’s draft report into the retail grocery sector is being welcomed by Government as a major milestone. “I asked the Commerce Commission to look at whether this sector is as competitive as it could be and today it has released its draft report for consultation,” Commerce and Consumer ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Christchurch’s Youth Hub ‘set to go’ thanks to further Government funding
    Construction of New Zealand’s first, purpose-built centre for youth well-being is ready to get underway thanks to an extra $2.5 million of COVID-19 response funding, Housing Minister and Associate Minister of Finance, Megan Woods announced today.  “The Christchurch Youth Hub is about bringing together all the things young people need ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Next step to protect Milford Sound Piopiotahi
    Expert group lays out plan to better protect iconic UNESCO World Heritage site Milford Sound Piopiotahi and its surrounds Funding confirmed for dedicated unit and Establishment Board to assess the recommendations and provide oversight of the process from here Milford Opportunities Project a test case for transformational change in tourism ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Funding for projects to reduce waste from construction and demolition
    The Government has announced funding for projects in Auckland and the lower North Island to help reduce construction and demolition waste. “Construction is the main source of waste sent to landfill, and much of this could be reduced, reused and recovered,” Environment Minister David Parker said. “The Government is funding ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Speech at the launch of the National Hepatitis C Action Plan
    Tēnā koutou katoa. Thank you Anglesea Pharmacy and Te Manawa Taki for hosting this event. As a doctor, I saw first hand the impact of hepatitis C. I met Moana in 2019; she came to the infectious diseases outpatient clinic at Wellington Hospital having tested positive for hepatitis C. Like ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Plan to eliminate hepatitis C as a major health threat by 2030
    A plan to eliminate hepatitis C in New Zealand, reducing liver cancer and the need for liver transplants, has been released today by Associate Minister of Health Dr Ayesha Verrall. “Around 45,000 New Zealanders have hepatitis C, but only around half know they have it,” said Ayesha Verrall. “Symptoms often ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • School upgrades and new classrooms for West Coast, Tasman and Canterbury
    A funding injection from Budget 2021 to complete four shovel ready projects and new classrooms at six schools and kura will provide a real boost to local communities, Minister Dr Megan Woods announced today. “This Government has committed to providing quality fit for purpose learning environments and 100,000 new student ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Warmer Kiwi Homes smashes annual target
    The Government's highly successful insulation and heating programme, Warmer Kiwi Homes, is celebrating a key milestone with the completion of more than 38,000 insulation and efficient heater installs in the year to the end of June, smashing its target of 25,000 installs for the year. “The Warmer Kiwi Homes scheme ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Exemption granted for Wallabies to enter NZ
    Bledisloe Cup rugby will be played in New Zealand after the Australian rugby team received an economic exemption to enter New Zealand. Travel between Australia and New Zealand was suspended on Friday for at least eight weeks following the worsening of the COVID outbreak across the Tasman. New Zealanders have ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Minister of Foreign Affairs makes three diplomatic appointments
    Foreign Affairs Minister Nanaia Mahuta today announced three New Zealand Head of Mission appointments. They are: Mike Walsh as Ambassador to Iran Michael Upton as Ambassador to Ethiopia and the African Union Kevin Burnett as Ambassador to Indonesia Iran “Aotearoa New Zealand has a long-standing and constructive relationship with Iran, despite a ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Enhanced Task Force Green Approved for West Coast and Marlborough
    The Government has activated Enhanced Task Force Green (ETFG) in response to the West Coast and Marlborough floods, Social Development and Employment Minister Carmel Sepuloni announced today. “To assist with the clean-up, up to $500,000 will be made available to support the recovery in Buller and Marlborough which has experienced ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Govt support for upgrade of Eden Park players facilities
    Minister for Sport and Recreation Hon Grant Robertson has announced funding to upgrade the players facilities at Eden Park ahead of upcoming Women’s World Cup events. Eden Park is a confirmed venue for the Rugby World Cup 2021, the ICC Women’s Cricket World Cup 2022, and a proposed venue for matches of ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • More jobs and quicker public transport motoring towards West Auckland
    Work to improve public transport for West Aucklanders and support the region’s economic recovery by creating hundreds of jobs has officially kicked off, Transport Minister Michael Wood announced today. Michael Wood and Auckland Mayor Phil Goff this morning marked the start of construction on the Northwestern Bus Improvements project. It ...
    BeehiveBy beehive.govt.nz
    1 week ago