5. HEATHER ROY (Deputy Leader—ACT) Link to this
to the Minister of Finance
How many Kiwis are expected to join the KiwiSaver scheme by 2011 and what proportion of the working-age population will this be?
Hon Dr MICHAEL CULLEN (Minister of Finance) Link to this
The Budget numbers are based on the assumption that some 830,000 workers—about 41 percent of the workforce—will have joined KiwiSaver by 2011-12.
Why not roll the State-run Cullen fund into KiwiSaver, which by 2011 would give every working-age Kiwi, including those not employed and those at home raising children, at least $8,000 as an endowment fund, which would guarantee an uptake of every New Zealander, and which would provide all Kiwis with a real stake in the country?
Hon Dr MICHAEL CULLEN Link to this
For a very simple reason: the New Zealand Superannuation Fund is there to guarantee the long-term viability of New Zealand superannuation. For many people that is the ultimate guarantee of a reasonable standard of living in retirement. I do not think this country wants to return to the days of right-wing Governments threatening, yet again, the future of New Zealand superannuation.
Darren HughesWhat reports has he seen on support for KiwiSaver, particularly on how it will benefit low-income earners?
Hon Dr MICHAEL CULLEN Link to this
I have seen very considerable support from the business sector, but particularly there is considerable realisation, as time moves on, that in fact those on modest incomes get substantially greater proportional benefits than those on high incomes. For people on $26,000 a year, for every dollar they save $3 goes into their KiwiSaver account.
Rodney HideWould he consider it a breach of the commitment made in schedule 4 of the New Zealand Superannuation and Retirement Income Act 2001 if National, or another party, decided to roll the State-run Cullen fund into the KiwiSaver scheme in order to benefit all Kiwis, including those not in work and on low incomes, and what would be the implication of such a breach?
Hon Dr MICHAEL CULLEN Link to this
Schedule 4 is not enforceable. If a future right-wing Government decides to get back, yet again, on the track of cutting future New Zealand superannuation by removing its funding, then in fact the verdict will lie with the people at the subsequent general election, and they will have to start all over, yet again, in building a secure future for future retirees. What people have to remember about KiwiSaver is that it will also significantly reduce the call on the State for income-tested supplementary assistance over and above New Zealand superannuation, because people will be self-reliant. In the future there may be significant calls on that, particularly if we are not able to lift home ownership.