A delay in introducing auto-enrolment in KiwiSaver will save
the Government about $514 million as Finance Minister Bill
English continues to promise a return of the government books
to surplus in 2014-15.
Changes are being sought to the terms and conditions that
govern the KiwiSaver provider schemes to prevent a potential
$14 billion retirement savings time bomb.
Choosing the correct KiwiSaver fund is particularly important
for young savers as they will spend the most time invested in
the schemeForsyth Barr savings specialist Damian Foster is
hoping that moves across the Tasman will also encourage
greater engagement by young savers with their KiwiSaver
accounts.
Prime Minister John Key says the Government is keen to look
at how it can combat high KiwiSaver fees that eat up almost
half of the earnings in the six default KiwiSaver providers.
Employees who were enrolled automatically in "default"
KiwiSaver schemes lost almost half of the money earned on
their savings in the past year - through providers' fees.
The Government has adopted a timid approach to superannuation
saving, ruling out compulsory savings and opting instead for
auto-enrolment in KiwiSaver - but not yet.
The fourth anniversary of KiwiSaver on July 1, 2011 passed
with little comment. Figures for July show the number of new
applications has dropped off markedly compared to previous
months.
Global financial volatility will have affected KiwiSaver
returns, but there also is an opportunity for new KiwiSaver
investors to enter at relatively lower prices, Forsyth Barr
saving specialist Damian Foster says.
