A number of proposed KiwiSaver changes contained in the Taxation Bill were introduced to Parliament this week.
The changes in the Bill included:
- Opening KiwiSaver to over 65s
- Establishing new employee contribution rates of 6% and 10%
- Reducing the maximum contributions holiday that people can take from the scheme from five years to one year
The Financial Services Council (FSC) has welcomed the changes with CEO, Richard Klipin, saying they will “significantly strengthen KiwiSaver and support its continued growth”, if passed.
“The FSC, industry, the Commission for Financial Capability, and many other have been lobbying hard for these changes to happen and the Government is to be applauded for listening to this and acting,” Klipin said, adding:
“It is also heartening that the National Party has indicated that it will support the Bill.”
“…it is essential that the scheme continues to evolve and improve.”
He added the proposed changes are supported by three major pieces of research recently commissioned by the FSC, including the latest on millennials attitude towards Kiwisaver (see: FSC Finds Millennials to Rely on KiwiSaver in Old Age).
“The consistent message across all three pieces of research though was clear public support for strengthening KiwiSaver and a call for Government and industry to do more”, said Klipin.
“As KiwiSaver enters its eleventh year and becomes an increasingly important part of all New Zealanders retirement planning it is essential that the scheme continues to evolve and improve,” he said.