Clearly, those commenting didn't grasp the content of what was being said.
How would you suggest that KiwiSaver would be fairer?
Government contribution to pump low incomes KS balance up so everyone retires with a minimum amount in their KiwiSaver? Higher tax on KiwiSaver for people with a higher balance? Government to take funds from people with a balance over a certain amount?
Making it so the percentages are staggered so only those with a balance under say 25,000 get the 12% combined contributions from themselves and their employer while those between 25,000 to 75,000 get the combined 9%, drop it down from 75,000 to 150,000 to 6% combined and those with balances over 150,000 are only allowed 3% contributions.
Make it so people on certain incomes arenβt allowed to join KiwiSaver?
Make it so thereβs a maximum amount that can be contributed to KiwiSaver in one year based on what the lowest full time employed person contributes each yearβ¦.. ie, the current minimum wage is $23.50 per hour so gross of $940 per week or $48,880 per annum. At 3% contribution by the employee is $1,466 per year while the employers after tax contribution is $1,250. That means the maximum anyone would be able to contribute to their KiwiSaver is any year would be $2,710.
Or should we make sure thereβs no disparity between the self employed and those in full time employment? A lot of self employed people only pay around $110 per month into KiwiSaver so they can get the government payout and donβt receive any contribution their employer. Should the maximum that can be paid into KiwiSaver be $1,320 each year?
Means test NZ Super?
Ban all other managed funds so thereβs a maximum rich donβt pump their extra disparity making money in there?
Because, the problem as I see it is that the higher the income, the more a saver and their employer will contribute meaning their balance will be higher than someone on a lower income. In other words, itβs easy to say increasing contribution rates will increase the disparity between those on higher incomes and those on lower, itβs much harder to manufacture a solution that doesnβt increase the disparity.
Ever since KiwiSaver started, there has always been comments about how it will cause disparity, but no one has offered a solution to stop it.
Three News today ran an item comparing KiwiSaver and NZ Super to Australia and had an educationist on there saying that we need to have a system more like they do in Australia to reduce the disparity between those with high retirement savings and those with low. Problem with that, is Australia is also battling with the disparity in retirement savings. Why? Because those who earn, save more, whether the contributions are split between the worker and employer like is NZ or made just by the employer as in Australia.
The gender super gap represents a crucia
fairvine.com.au