2. Hon MARK GOSCHE (Labour—Maungakiekie) Link to this
to the Minister of Finance
What reports has he received on the uptake of KiwiSaver?
Hon Dr MICHAEL CULLEN (Minister of Finance) Link to this
As of last week the total number of KiwiSaver enrolments received by the Inland Revenue Department had reached approximately 130,000. It is encouraging to see that just 2 months since the launch of the scheme, so many people are already indicating the likelihood of saving better for retirement, through KiwiSaver.
Hon Dr MICHAEL CULLEN Link to this
There has been massive support amongst a wide range of the community, but I have also seen some various, and often conflicting, reports on whether the extensions to KiwiSaver announced in this year’s Budget are supported by the Opposition. In particular, I have seen reports of Mr English indicating that the extensions to KiwiSaver announced in this year’s Budget are supported by the Opposition. In particular, I have seen reports of Mr English indicating that New Zealand is too generous in its support for retired New Zealanders—an indication that I am sure we will want to remind senior citizens of in the run-in to next year’s election.
Hon Bill EnglishWill the Inland Revenue Department’s regular releases of the uptake of KiwiSaver be able to distinguish between those higher-income people who have moved from existing schemes into KiwiSaver, and lower-income people who have actually signed up through the opt-on procedure?
Hon Dr MICHAEL CULLEN Link to this
I think we will have an indication, in the early returns, about the spread of KiwiSaver in terms of different income groups. I think further down the track we may have some better indications around that.
R Doug WoolertonHas the Minister seen reports showing that public opinion towards compulsory savings—something New Zealand First has long advocated—is changing, with 63 percent of respondents to a New Zealand Herald survey stating that saving for retirement should be compulsory; if so, has he reconsidered his position on making savings compulsory?
Hon Dr MICHAEL CULLEN Link to this
On the last point, no I have not. It seems to me that the view on compulsory savings is a bit like people’s views on road tolls and people’s views on wind power: they tend to be in favour of it, until it gets quite close to them.
Is KiwiSaver uptake likely to be affected by the current difficulties being faced by finance companies?
Hon Dr MICHAEL CULLEN Link to this
It should not be, as long as people understand there is a substantial difference between the operations of superannuation schemes, especially KiwiSaver, and those of finance companies. Finance companies borrow and lend, and are essentially in the business of pricing risk. Superannuation schemes invest savers’ money in a wide range of assets. Since the current legislation on superannuation schemes came into force in 1989, no such scheme has fallen over. Indeed, the design of KiwiSaver would make it almost impossible for there to be a run on KiwiSaver schemes.