Changes to KiwiSaver announced in this year’s Budget have turbo-charged the semi-sompulsory savings scheme, however they don’t go far enough.
A poll of senior finance industry representatives conducted by Finsia, the Financial Services Institute of Australasia, reveals that majorty of respondent want more incentives in the scheme.
Finsia says that 57% believe “that more incentives are needed to be built into KiwiSaver to meet the aim of improving the New Zealand saving rate and provide capital for future investment.”
Meanwhile, while 23% believe KiwiSaver is sufficient and 20% believe KiwiSaver is ill-equipped to have any significant impact on national savings.
Other findings from the poll are more positive.
- 53% believe it KiwiSaver changes will raise household savings
- 49% believe it will create a more secure retirement for Kiwis
- 44% believe it will address the future costs of an ageing population.
“A clear message from the poll was that further work is required on KiwiSaver,” Finsia chief executive Brian Salter says. “The majority (57%) believe that more incentives are needed to meet the aim of improving the New Zealand saving rate and provide capital for future investment.”
“Finsia supports the notion of a default contribution savings scheme in the New Zealand market to further boost retirement savings. Finsia also supports policies that create a strong and productive economy with a “deeper capital base”. This is crucial for ensuring longer-term financial security for New Zealanders.”
The on-line poll of 61 members of the Financial Services Institute of Australia (Finsia) was conducted between May 25 and 30 by Roy Morgan.