21 May 2015
Axing Kiwisaver Kick Start Payment a Terrible Signal
Financial Services Council (FSC) Reaction to Dropping Kiwisaver $1000 Kick Start Incentive
This is a terrible signal for younger New Zealanders starting out saving for the first home and a comfortable retirement
using Kiwisaver against the background of an aging population.
This is how the FSC CEO Peter Neilson reacted to the abolition of the $1000 Kiwisaver kick start payment costing $500m
over the next four years to help the Government deliver a wafer thin surplus for 2015/2016.
This is like a parent raiding their own child’s piggy bank to pay for a round of drinks already promised down at the
Raiding the piggy banks of the next generation is not the smartest move when the population is ageing. It is a pity,
that the Government’s failure to manage its own finances, will hold back some younger New Zealander’s from better
managing their own future finances.
The Government in an earlier budget had already cut back on the Government’s top up payment that incentivises Kiwisavers
to save more. The savings from this move would have been better applied to reducing the bias against Kiwisaver
investments compared to the treatment for rental property.
FSC is the industry body for Kiwisaver providers and personal insurance providers.