[GRTV] Stronger and more unified voice needed to force KiwiSaver changes
The Retirement Commissioner Jane Wrightson talks to Philip Macalister about changes she would like to see made to KiwiSaver.
Friday, September 27th 2024, 6:21AM
Jane Wrightson says it is time for a KiwiSaver review but the government doesn’t seem that interested in making changes.
The government doesn’t see it as a burning issue, she told Good Returns TV. Also KiwiSaver is not in the coalition agreement so it’s not likely to get a lot of attention.
The commission has recently released a comprehensive report on KiwiSaver which should be used to get the ball rolling.
Further complicating the issue is numerous government departments, and therefore ministries are involved in KiwiSaver including the Minister of Finance, Minister of Revenue and Minister of Commerce and Consumer Affairs.
She says industry voices “need to be stronger and more unified and more persuasive” to effect change.
At the start of her term as Retirement Commission Wrightson was in favour of compulsion but now she has changed her tune.
She says the evidence doesn’t support compulsion, plus “New Zealanders don’t like
“We analysed the data and figured out you didn’t need it.”
However, one big change which would be positive is increasing contribution rates.
Again she changed her mind here initially thinking that six percent (that is six percent member and six percent employer) seemed right.
Her policy team talked her down to four plus four.
“Any more than that you may be over saving; that’s the threat.”
Wrightson would like to see total remuneration packages go; “they’re pretty awful”.
And work needs to be done around supporting women on maternity leave.
“The gender pay gap turns into retirement savings gap,” she says. “Our data is very clear on that.”
While seeing more KiwiSaver members getting financial advice is something she is keen on it’s not a role for the government.
“The government doesn’t really need to do anything much about this but the providers absolutely do.”
“I call on the industry to do more in this space,” she says.
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