Government looking at more changes to KiwiSaver

Asia's Tech News Daily

Government looking at more changes to KiwiSaver

Fresh off the back of a major shake-up to the default provider regime, Consumer Affairs Minister David Clark has signalled the Government is looking into more changes to KiwiSaver.

Speaking at the Financial Services Council conference today, Clark told around 800 finance professionals that he was having a look at the KiwiSaver settings.

“KiwiSaver has gone from strength to strength over the last 15 years but there are still things we can tweak, including the contribution settings to get more members enrolled.

“If we get these things right we can increase financial resilience, improve equity in the system and improve the depth of our capital markets.”

According to the Financial Markets Authority’s annual KiwiSaver report, just over 3.09 million people were members of the scheme as of March 31, with $81.6 billion invested.

But only 1.88 million of those members contributed to their account during the year. That was up 3.9 per cent compared to the prior period but still remains well short of the total number of members.

In 2019 the Retirement Commissioner made a number of recommendations to change KiwiSaver including introducing a small-steps approach that would automatically increase member contributions by 0.5 percentage points a year until it reached 10 per cent or the member opted out.

The commissioner also recommended changing the government’s contribution to better incentivise voluntary contributions to KiwiSaver by non-employees.

Currently, the government puts in 50c for every dollar a member contributes up to a maximum government contribution of $521 per year.

But the commissioner has recommended the government increase its match of voluntary contributions by putting in $2 for every $1 contributed up to $2000 per annum in a move that could replace the existing incentive.

In order to keep costs down, she recommended this incentive be limited to the first 12 years of KiwiSaver membership.

Another recommendation was that beneficiaries be auto-enrolled in KiwiSaver through a 3 per cent government contribution made on their behalf on top of their current benefit.

The Government largely parked its response to the recommendations in 2020 due to Covid-19.

But the Ministry for Business Innovation and Employment has been conducting a wide-ranging consultation on KiwiSaver this year.

In June, MBIE told the Herald that officials were looking to prepare advice to ministers on the recommendations from the Retirement Commissioner’s Report from 2019.

“A government response is due this year. This includes identifying recommendations which need more detailed consideration.”

The Herald has requested more detail from both MBIE on its consultation and any recommendations to the Government and the minister on what contributions changes could be in the works.

Clark told the conference he was focusing on a number of other projects to create better outcomes for consumers.

“This includes consulting on buy-now pay-later services to gain a better understanding of the emerging landscape and find out how these products could trigger financial hardship for some consumers. From there we can see whether regulation is needed for these products.”

He also mentioned the establishment of a consumer data right framework to allow consumers to securely share data about themselves with trusted third parties including financial institutions.

Clark said the Government recognised that legislative changes on the scale that had been seen recently resulted in substantial organisational change for the finance industry.

“I’m acutely aware of that and acknowledge the challenges this presents to many of you, particularly during the pandemic. I want to assure you the Government will be keeping these challenges and pressures in mind when planning future work programmes.

“Please continue to reach out to me and my officials with any concerns and please continue to provide submissions.”

He reminded the industry of the need to build consumer trust and confidence in financial services.

“You as the financial services industry can make a huge difference to the financial wellbeing of everyday New Zealanders. Together let’s build a better financial future for the generations of today and tomorrow.”

Internet Explorer Channel Network
Asia's Tech News Daily
News Related

OTHER NEWS

Tata Steel Long Standalone December 2021 Net Sales at Rs 1,677.22 crore, up 22.95% Y-o-Y

Reported Standalone quarterly numbers for Tata Steel Long Products are: Net Sales at Rs 1,677.22 crore in December 2021 up 22.95% from Rs. 1,364.17 crore in December 2020. Quarterly Net ... Read more »

Advik Capital Standalone December 2021 Net Sales at Rs 6.13 crore, up 4923.2% Y-o-Y

Reported Standalone quarterly numbers for Advik Capital are: Net Sales at Rs 6.13 crore in December 2021 up 4923.2% from Rs. 0.12 crore in December 2020. Quarterly Net Profit at ... Read more »

Each of us can make a difference

“Just a reminder that you don’t have to make resolutions. Or huge decisions. Or big proclamations. You can just set some sweet intentions and take each day as it comes.” ... Read more »

Mcap of BSE-listed companies jumps to all-time high of over Rs 280 lakh crore

Representative image Market capitalisation of BSE-listed companies jumped to an all-time high of over Rs 280 lakh crore on Monday as benchmark indices bounced back after taking a breather in ... Read more »

EU chief scraps meetings because driver is COVID-19 positive

BRUSSELS — European Commission President Ursula von der Leyen said Monday that she has canceled her in-person appointments at the European Parliament this week after her driver tested positive for ... Read more »

Fauci says it's still an 'open question' whether omicron spells Covid endgame

Dr. Anthony Fauci, White House Chief Medical Advisor and Director of the NIAID, responds to questions from Sen. Rand Paul (R-KY) at a Senate Health, Education, Labor, and Pensions Committee ... Read more »

Repertory Theatre's panto has pace and slapstick

The Repertory cast of Fantastic Mr Fox cast were loosely assembled on stage while director Kerry Girdwood and “music rescue” Patrick McKenna took them through a rendition of “Cider inside ... Read more »

Working in the flesh – whoever complains is fired, or mistreated

“Are u kidding me?” Menacingly, the burly manager of employment agency Reyhan walks up to one of his staff members and stands in front of him in a fighting stance. ... Read more »

Interview | Pent-up travel demand to drive growth once Omicron wave ebbs, says MakeMyTrip CEO Rajesh Magow

There is an accelerated digital shift happening as a result of the pandemic, says Rajesh Magow. India’s leading travel online company MakeMyTrip is helping 22,000+ offline travel agents across 750 ... Read more »

Sweden's spy agency probes drones over 3 nuclear plants

On Location: January 17, 2022 Catch up on the developing stories making headlines.ABCNews.com COPENHAGEN, Denmark — Sweden’s domestic security agency said Monday it has taken over the preliminary investigation into ... Read more »

Insider Q&A: Realtors' group Chief Economist Lawrence Yun

LOS ANGELES — The U.S. housing market had another scorcher of a year in 2021, aided by low mortgage rates, a swell of demand that outstripped supply and a rebounding ... Read more »

Kaag joins club ‘responsible euro countries'

Photo: ANP Minister Sigrid Kaag (Finance) will dine with a number of colleagues from other euro countries on Monday evening after her first Eurogroup meeting to “exchange views” on the ... Read more »

Shell supplies electricity for six million households with two floating wind farms

The wind farms will be located off the east coast of Scotland and should generate enough electricity in the future to provide electricity to six million households. Floating wind farms ... Read more »

India's overall economic activity remains strong, says RBI article

Representational image. India’s overall economic activity remains strong, driven by an upbeat consumer confidence and uptick in bank credit, and expectations that Omicron may turn out to be a “flash ... Read more »

Container terminal to be built in Caspian seaport — governor

According to Igor Babushkin, the terminal will be developed in two stages and will support transshipment of eight million tonnes of cargo by the end of 2030 Read more »

Wall Street remains closed on Martin Luther King Day

Photo: ANP The stock exchanges in New York will remain closed on Monday in observance of Martin Luther King Day. The day in honor of the American pastor and political ... Read more »

Pandemic hasn't slowed China's love for US lobster

On Location: January 17, 2022 Catch up on the developing stories making headlines.The Associated Press PORTLAND, Maine — China is showing no signs of slowing its demand for American lobster ... Read more »

INDmoney raises $86 mn from Tiger Global, Steadview Capital, Dragoneer and others

Money management and investment platform INDmoney has raised $86 million in a Series D round led by Tiger Global, Steadview Capital, Dragoneer with the startup’s founder and CEO Ashish Kashyap ... Read more »

Container carrier Maersk further raises profit forecast

Photo: ANP The Danish shipping company AP Møller – Maersk is benefiting even more from the high demand for sea containers and the sharply increased transport rates in sea freight ... Read more »

15 lakh power sector employees to go on 2-day strike in February: AIPEF

Representative energy The All India Power Engineers Federation (AIPEF) on Monday said that around 15 lakh power sector employees will go on nationwide strike for two days from February 23 ... Read more »

Coronavirus: Visitor numbers for Hong Kong continue to plunge as tourism lawmaker calls for clear criteria on border opening plans

The Hong Kong Tourism Board reported a 97.4 per cent drop in the number of visitors in 2021, as the lawmaker representing the industry urged the government to clearly establish ... Read more »

Macau's gaming law reforms positive for casino industry, but outlook clouded by Covid-19 uncertainty, UBS, JPMorgan analysts say

The amendments to Macau’s gaming laws have removed significant regulatory overhang for the city’s casino industry, but the outlook for the sector remains clouded because of the uncertainty over Covid-19, ... Read more »

Russia denies looking for pretext to invade Ukraine

The Associated PressIn this photo provided by the Russian Foreign Ministry Press Service, Russia’s Foreign Minister Sergey Lavrov, right, and Croatia’s Foreign Minister Gordan Grlic Radman walk together ahead of ... Read more »

How To Save Money On Business Transactions

If you run a business, you'll agree that there's always a need to make transactions. A transaction is an exchange, usually monetary, that happens between the provider of a service ... Read more »

Power sector employees to go on 2-day strike in February: AIPEF

Representative energy The All India Power Engineers Federation (AIPEF) on Monday said that around 15 lakh power sector employees will go on nationwide strike for two days from February 23 ... Read more »

UGC warns against franchise model between edtech and universities to offer degrees, diplomas

Indian higher education regulator has cautioned colleges and universities not to get into a franchise model with edtech players to offer degrees and diplomas. And any violation will invite action ... Read more »

Nord Stream 2 not fully compliant with European law — Germany's Foreign Minister

The certification process has been suspended therefore, Annalena Baerbock noted Read more »

Incredible Details to Check on When Looking for a Digital Marketing Company for Your Business

Seeking the help of professionals is one way of improving your approach to digital advertising. When you have any business, it's imperative to keep up with market trends and consumer ... Read more »

Growth Challenges Facing Australian Small Businesses

In Australia, many of the country's most cutting-edge businesses are startups and small businesses. Nonetheless, breaking down obstacles to maximise growth opportunities is no easy task for these business entities. ... Read more »

Taste of the Arctic gastronomy festival in Murmansk attracts more than 6,000 people

The festival opened in Murmansk on Friday, January 14 Read more »

Chip shortage affects Renault car group sales in 2021

Photo: ANP French car group Renault’s global sales fell last year, mainly because production was severely disrupted by the dire chip shortages in the car sector. The total number of ... Read more »

Nord Stream 2 certification should not be politicized by German regulators — MFA

It was noted that the gas pipeline should fully comply with European law for the positive conclusion to be given by the German regulator Read more »

"Oh, God! Where am I?" About the ‘solo-traveling legend' who crossed Taimyr on her own

A TASS correspondent, Vera Kostamo, joined the crew of Mikhail Somov research/survey vessel to cover the seventh voyage in 2021 to its final destination - to the Wrangel Island, and back Read more »

Who Can Become a Health Insurance Broker

The United Kingdom is home to various internationally renowned insurance firms and providers. In terms of size, the insurance industry in the United Kingdom is the largest in Europe and ... Read more »

How do Neobanks Manage Fraud?

The idea of digital banking isn’t new, but the trend has grown fast in recent years. Banking on digital platforms has become part of the new norm. People are happier ... Read more »

Daily virus cases in Russia double as omicron spreads

MOSCOW — Russian authorities on Monday reported a sharp spike in new coronavirus cases, apparently driven by the rapid spread of the omicron variant health officials warned about last week. ... Read more »

China calls on countries to get supply chains in order

Photo: ANP Countries worldwide must secure their supply chains to avoid inflation shocks. Chinese President Xi Jinping said this during a stripped-down online version of the World Economic Forum (WEF). ... Read more »

SRF Q3 PAT seen up 66.6% YoY to Rs 505 cr: Sharekhan

Sharekhan has come out with its third quarter (October-December’ 21) earnings estimates for the Speciality Chemicals sector. The brokerage house expects SRF to report net profit at Rs 505 crore ... Read more »

Atul Q3 PAT may dip 7% YoY to Rs 175 cr: Sharekhan

Sharekhan has come out with its third quarter (October-December’ 21) earnings estimates for the Speciality Chemicals sector. The brokerage house expects Atul to report net profit at Rs 175 crore ... Read more »

Aarti Industries Q3 PAT seen up 9.4% YoY to Rs 185 cr: Sharekhan

Sharekhan has come out with its third quarter (October-December’ 21) earnings estimates for the Speciality Chemicals sector. The brokerage house expects Aarti Industries to report net profit at Rs 185 ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic