Labour leader Phil Goff has officially launched his party’s election campaign by confirming he would take the \”tough\” decisions to make KiwiSaver compulsory and raise the age of eligibility for NZ super to 67.
\”New Zealand is facing some very big issues – our high private debt, lack of savings, and the looming costs of an ageing population\”, he told reporters in Wellington this afternoon.
\”John Key is refusing to take the tough decisions to solve these problems. This failure of leadership leaves our children and grandchildren to pick up the tab.\”
\”I will do what’s right for the future rather than what’s easy for today.\”
The KiwiSaver change \”for all workers\” would take effect from 2014.
Employee contributions remain at 2 per cent, \”because we know families are finding it hard to make ends meet right now, let alone save\”.
However, employer contributions would increase by 0.5 per cent a year from 3 per cent in 2014 to 7 per cent by 2022.
Making KiwiSaver universal will make it simpler for Kiwis to save and build a retirement nest egg\”, \”Universal KiwiSaver also reduces our reliance on foreign lending. It builds up our own pool of savings which can be invested in New Zealand businesses and create jobs for Kiwis.\”
To make the policy more affordable for the Government, Mr Goff said Labour would phase in the $1000 kick start for all new members at $200 a year.
Labour would also gradually raise the age of eligibility for New Zealand superannuation from 65 to 67.
That would be done over 12 years between 2020 and 2033 giving people time to plan.
\”Nothing will change for those currently receiving NZ Super or within nine years of retirement.\”
Mr Goff said Labour recognised for some New Zealanders, to continue working beyond 65 such as those doing physically demanding work and would introduce a \”Transition\” payment at the same level as NZ Super which could be accessed between the age of 65 and 67.
Mr Goff pledged to keep the level of NZ Super at 66 per cent of the average wage.
\”KiwiSaver is not a substitute for NZ Super.\”
In the third major plank of Labour’s savings policy, Mr Goff said his party would resume payments into the NZ Superannnuation or \”Cullen\” Fund.
Payments would resume at $750 million a year in 2012/2013, increasing by the same amount each year until contributions reached $2.4 billion.
– More to come
By Adam Bennett
Reference: http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10762041