INDEPENDENT NEWS

Axing Kiwisaver Kick Start Payment a Terrible Signal

Published: Thu 21 May 2015 03:46 PM
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 pub.
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.
ends

Next in New Zealand politics

18,400 Children Lifted Out Of Poverty
By: New Zealand Government
On Our Unreal Optimism About The Economic Impact Of Coronavirus
By: Gordon Campbell
Government To Regulate Vaping
By: New Zealand Government
On The Political Donations Scandals
By: Gordon Campbell
New Zealand: Housing Crisis Requires Bold Human Rights Response, Says UN Expert
By: UN Special Rapporteur
Benefit Settings Rise In Line With Wages As Of 1 April
By: New Zealand Government
Latest child poverty statistics released
By: Statistics New Zealand
20k More Children In Poverty Under Jacinda Ardern
By: New Zealand National Party
Increase Wages To Address Child Poverty
By: Council of Trade Unions
More Government Action Needed To Lift Children Out Of Poverty
By: The Salvation Army New Zealand
Almost 12,000 More Children On Benefits
By: Lindsay Mitchell
Open Letter Re: Tertiary Student Exemption To COVID-19 Travel Ban
By: New Zealand Union of Students' Associations
Covid-19: Travel Restrictions For Those Coming From China Extended
By: RNZ
Coronavirus: Quarantine At Whangaparāoa Military Base Ends For First Group Of Evacuees
By: RNZ
Regional Tourism Bodies Welcome Government Tourism Package In Response To Coronavirus
By: RNZ
View as: DESKTOP | MOBILEWe're in BETA! Send Feedback © Scoop Media