Compulsory Super?

The SST reports:

Kiwis could soon be made to save for their old age, with compulsory savings back on the political agenda.

The government will put compulsory retirement savings on the table as part of a review to boost Kiwis’ retirement nest-eggs and reduce New Zealand’s dependence on overseas borrowing.

The fate of the Cullen fund, KiwiSaver and tax breaks for savings – which could halve the tax paid on some bank deposits and other investments – will also be in the mix.

A working group, based on last year’s Tax Working Group, is close to being finalised, and ministers plan to use its findings as a centrepiece of next year’s Budget, and for the election campaign.

Government sources said PricewaterhouseCoopers tax expert John Shewan would be part of the group, possibly as its chair.

I am not a fan of , as it forces people into superannuation funds, when a better investment for them may be paying off the mortgage or investing in their own business.

However KiwiSaver is close to de facto compulsory as it is opt out, and the subsidies are so great you have to be very poor or very stupid not to take them up.

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