International Cat Speculators Since 2006

Posts tagged ‘Kiwisaver’

Kiwisaver Changes A-Ok

While the left scream blue murder over National’s kiwisaver changes…

But National has gone beyond fiscal policy here and has also reduced entitlements under the scheme, capping the employer contribution at 2%, and effectively reducing it from a “4+4″ scheme to a “2+2″ one. This in turn has flow-on effects for the employee contribution, effectively halving the matching government contribution there as well.

…Mary Holm, who literally wrote the book on the scheme, has given her thumbs up.

True, the freezing of employer contributions at 2 per cent of pay from next April – rather than rising to 4 per cent by 2011 – would make KiwiSaver somewhat less attractive for employees.

But with the government kick-start, tax credits and other incentives unchanged, KiwiSaver would still be the best way for most employees to save.

The contributions of anyone earning less than $52,150 would be tripled by employer and government input. And that means three times bigger retirement savings.

For those on higher incomes, the numbers diminish a little. But someone earning $100,000 would still see their contributions boosted more than two and half times.

Note, too, that some employers are already giving employees more than they are legally obliged to give and may continue to do so.

Somehow, I don’t think this is going to stop the “world is going to end” hyperventilating that seems now to be compulsory with any suggestion that National might cut back some of Labour’s more creative excuses to not cut taxes.

Gotta give them credit thought, they didn’t cut health and education to do it. I guess certain people are more than a little miffed about that.

(Note: Photo not a true likenes of Mary Holm)

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