David Cunliffe announced yesterday:
“Under a Labour government all employees aged between 18 and 65 – with the exception of students, beneficiaries and the self-employed – will be automatically enrolled in KiwiSaver. The opt-out provision will be removed.
This means that people will lose the ability to choose how to invest their money. Some employees may have a very rational reason not to invest in KiwiSaver. They may be saving for a major purchase, or to buy into a business. They may want to pay off debt. Instead Labour is going to force them all into a savings scheme.
“Labour will retain the $1000 kick-start and government contribution of up to $521 a year.
That’s stupid. If it is compulsory, then you don’t need the kick-start or a government contribution. That’s just taxing people more to give it back to them. Those attributes were only needed to encourage people to enrol, but with compulsion makes no sense.
We will also increase the employer and employee minimum contribution rates gradually by 0.25 per cent a year over six years; rising from the current 3 per cent each to 4.5 per cent in 2021.
Which means the same drop in take home pay. That may be fine for some or most – but who force that on everyone.