Strong support for compulsory KiwiSaver
25 Jun, 3:27pm by Niko Kloeten
Most New Zealanders support making KiwiSaver compulsory and believe it would be in New Zealand's best interest, according to new research by the Financial Services Council.
A Horizon Research poll of 3,177 adult New Zealanders commissioned by the FSC found that 74% think New Zealand should, over time, introduce a retirement savings scheme in which contributions by both employees and employers are compulsory. Only 16% oppose.
A similar number, 72%, support the FSC suggestion of increasing savings contributions to reach 10% a year (5% from employees, 5% from employers).
In terms of how compulsory contributions might be phased in, 52% support the idea of contributions being made of 0.5% each year by the employee and employer over 10 years, until the total each year reaches 10% of an employee's income.
Asked if making KiwiSaver compulsory or voluntary is the best option for New Zealand, regardless of their personal point of view, 63.7% favour compulsion, 26.7% favour voluntary, while 9.6% don't know.
FSC chief executive Peter Neilson said the latest survey on retirement policy option suggestions showed most of the parties in Parliament would have their voters' support if they move to consider new retirement savings options.
Some 73% of people who voted National at the 2011 general election think making KiwiSaver compulsory would be in New Zealand's best interests. Support among other parties' voters was: 66.3% Labour, 70.1% Green, 74% NZ First, 60.1% Maori Party and 79.5% Mana.
The FSC report on future retirement options is available here.
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