Almost three out of four New Zealanders agree now that it was a mistake to scrap the 1975 scheme, according to research that was commissioned by the Financial Services Council and run during December.
A Horizon Research Survey of 2107 respondents and matched to the adult population, asked whether all New Zealander employees should be required to belong to KiwiSaver and whether it was a mistake for New Zealand to abolish its compulsory super scheme in 1976.
“This was once an issue that bitterly divided New Zealanders, but there has been a huge turnaround and now supporters of all parties agree that cancelling the 1975 Superannuation Scheme was a mistake and that universal coverage by KiwiSaver is supported,” the chief executive of the Financial Services Council Mr Peter Neilson said. . .
The scheme that was scrapped in 1975 wasn’t Kiwisaver.
Saving for retirement is in general benefits individuals and the economy.
It is good to encourage people to save for their own retirement and that it should be as easy as possible for them to do so.
I can see a problem in a few decades when there’s a huge divide between retirees who have the safety net of a Kiwisaver account to make retirement easier and those who don’t.
But I am very wary of making it compulsory.
Most people are capable of making their own judgement about what’s the best use of their own money and investing in their own business or paying off a mortgage might be better for them than a Kiwisaver account.