Kaspanz is disappointed at today’s Government’s decision to immediately stop the Kiwi Saver $1000 dollar kick start incentive.
Consumers want consistency in savings schemes with no surprises, and Kiwi Saver has already been subject too many changes in its history.
New Zealand leads the world with its excellent Tier 1 New Zealand Superannuation model, and the Tier 2 Kiwi Saver Scheme.
Government intervention does nothing to inspire savers confidence.
Consistency and certainty is a pre-requisite for long term savings and pensions schemes, and this latest announcement erodes consumer confidence.
Posted by Alec Waugh
Kiwisaver kick-start scrapping.
I agree, it is very disappointing. On Bill English’s own figures there are 2.5 million New Zealanders already subscribed and while the subsidy burden may have been significant in the past, the rate of new subscriptions from this point on must surely have tapered off, making the out-year costs to Government hardly onerous in the scheme of things. The benefits of predictability and conversely, the damage this action must do to expectations, really needed more consideration. Certainly, the scheme has been a roaring success and, yes, perhaps it can stand on its own two feet without the kick-start. But, as always, the lowest income earners have less incentive to make the income sacrifice to come in from the cold.
Michael