Labour govt 2020-23

[winner69]

Seems Govt thinks most Kiwis earn more than they really need to live today and should be putting heaps more aside for their 'golden years'

https://www.nzherald.co.nz/business/...QOGQJVKENEQ2I/

[jonu]

Not content with State subsidy to the tune of tens of millions of Mainstream Media (for what expected payback you might well wonder), Ardern's government is also placing sneaky ads with NZME for 300k more.

https://www.stuff.co.nz/national/pol...out-disclaimer

Do you reckon NZME will be a little hesitant to criticize Labour after this lot? Grubby, grubby, grubby. Ardern's clear and transparent obscured for all to see.

[justakiwi]

The people they are targeting with this, are probably the ones who can least afford to pay more than 3%. At a pinch they might manage 5%, but 10 is unrealistic.

My personal views have changed significantly since I got back into investing. I contribute the minimum 3% to my Balanced KS, and do my own investing alongside it. A much better strategy for me, than contributing more to KS.

Article is paywalled so can’t see the details, but if they are proposing 10% as the new minimum contribution, it will encourage new employees on low incomes, to opt out altogether.

Seems Govt thinks most Kiwis earn more than they really need to live today and should be putting heaps more aside for their 'golden years'

https://www.nzherald.co.nz/business/...QOGQJVKENEQ2I/

[Zaphod]

Seems Govt thinks most Kiwis earn more than they really need to live today and should be putting heaps more aside for their 'golden years'

https://www.nzherald.co.nz/business/...QOGQJVKENEQ2I/

No doubt the employers will bear the bulk of the cost. I suppose this will be on top of the unemployment insurance? We have a few interesting years ahead.

[Zaphod]

The people they are targeting with this, are probably the ones who can least afford to pay more than 3%. At a pinch they might manage 5%, but 10 is unrealistic.

My personal views have changed significantly since I got back into investing. I contribute the minimum 3% to my Balanced KS, and do my own investing alongside it. A much better strategy for me, than contributing more to KS.

Article is paywalled so can’t see the details, but if they are proposing 10% as the new minimum contribution, it will encourage new employees on low incomes, to opt out altogether.

Yes, a new minimum, but according to the article they could step it up slowly but regularly. You're right, it will hurt those who can least afford it the most, but I suppose they view further increases in the minimum wage as partly offsetting that.

Ayesha Scott, a finance professor at AUT is quoted in the article stating that contributions should be made compulsory for employers, regardless of whether [low income] earners choose to contribute or not.

[Panda-NZ-]

They could put back in the $1k Sir Bill took away from new kiwisaver entrants and raise it to $2k.

[peetter]

Yes, a new minimum, but according to the article they could step it up slowly but regularly. You're right, it will hurt those who can least afford it the most, but I suppose they view further increases in the minimum wage as partly offsetting that.

Ayesha Scott, a finance professor at AUT is quoted in the article stating that contributions should be made compulsory for employers, regardless of whether [low income] earners choose to contribute or not.

First step before increasing contributions should be removing income tax from Employer contribution and kiwisaver gains. Then make Employer match the contributions IF the employee chooses to contribute more.

But this being Labour government, anything that would affect tax revenue is a big nono. That's why forcing increases is what they want to do, because it increases tax revenue, not because it prepares people for retirement.

[Panda-NZ-]

An idea which would further undermine what's left of our progressive income tax system.

[peetter]

An idea which would further undermine what's left of our progressive income tax system.

I don't see a problem, anyone saving for their own retirement most likely will not be a burden on society when retired. I don't get why you lefties hate an idea of people getting their hard earned money and think it's okay to take as much as possible.

[Panda-NZ-]

Well the govt is the only reason you have a job right now due to their timely intervention to stop a collapse.

Tax cuts have a cost and it has to come from somewhere.