Prime Minister John Key has ruled out making KiwiSaver
compulsory, but a superannuation provider says it is
inevitable the scheme will eventually go that way.
Under the current scheme, people are automatically enrolled
when they start a new job and are given the choice to opt
Mr Key said the Government is considering an option in which
those who have not moved jobs since the scheme started would
also be automatically enrolled, but that the scheme would not
be made compulsory.
However, Tower Investments chief executive Sam Stubbs said he
believed eventually KiwiSaver would move in that direction.
"I think ultimately we will get to some form of compulsion,"
Mr Stubbs told Radio New Zealand.
"It's not too critical whether it's compulsory now or not,
but the fact that you are encouraging people to save for
their retirement is the most important thing."
Mr Stubbs said compulsory savings would be necessary if New
Zealand wanted to move into the same realm as countries like
Sweden, Denmanrk and Singapore.
"They are small countries, they have small populations, but
they have very large savings pools and in order to....get
very large savings pools you're probably going to have to
have some element of compulsion," he said.
"I think most Kiwis would agree that it's a pretty reasonable
ask to say that if you're working and receiving a wage you
should be putting away something for your old age."
Mr Stubbs said he thought businesses would also welcome a
"Business in this country would want to be running their
businesses in a country that has a large pool of money
available for investment. KiwiSaver, right now, is getting
nine out of 10 every savings dollars in New Zealand and the
size of that pool could be very significant for business long