Jane DoeJun 22

I honestly find National's policy on KiwiSaver disgusting. This country has a major issue with low incomes and poverty. Requiring people experiencing poverty to put 6% of their gross income into a retirement savings account is not feasible and will result in worsening poverty.

This is an abhorrent policy aimed squarely at the well-off, insulated from the horrific impact this will have.

#NZPol #kiwisaver

Show threadJane Doe

The policy does allow people to pause contributions based on "hardship", but this is still inappropriate. The proposed requirements for this are stringent, and people experiencing poverty should not be obligated to satisfy a bureaucracy in order to spend their own money on essential needs.

Additionally, it reduces flexibility that poor people need. Under these rules, people might not be able to use their own money to build emergency funds, or move for better work, et cetera.

#NZPol #kiwisaver

Jun 22 at 2:53amWeb
Show threadJane DoeJun 22

The reason the policy is like this is so that the National can claim they are bringing New Zealand's retirement savings plan in line with Australia's. The rate is chosen for that reasons - 6% employee contributions plus 6% employer contributions add to 12% percent, superficially equivalent to the Australian rate.

But the policy is not equivalent, because Australia's superannuation policy is paid by the employer on top their regular pay, not out of the employee's gross pay.

Additionally, it should be noted that New Zealand has a lower wage levels, so importing policy wholesale is inappropriate.

#NZPol

Show threadMāmā takiwātangaJun 22
@janef0421 And what actually happens is that things go wrong in life, so those poorest workers in New Zealand who were not able to build an emergency fund because their wages were insufficient will be forced to apply to the bureaucracy for permission to draw on that kiwisaver and use it, then when the time comes to retire they will be forced to live in poverty and blamed because they did not save enough.