Coffee cup cure for economy
It has released new data from Infometrics that shows that if 80% of the workforce were signed up to KiwiSaver, contributing twice as much as they are now, the amount of money saved in the scheme’s funds would rise to $731 billion by 2066. It is $13 billion today.
FSC chief executive Peter Neilson said lifting the rate of saving to 5% of an employee’s income, matched by 5% from their employer, would be a huge boost to the Kiwi economy.
The projection assumes new KiwiSavers increase their savings rate by 1% a year (0.5% of their income, matched by 0.5% from their employers) until they get to 10%, at which point existing KiwiSavers would increase their contributions to the same level.
That amount of saving would make the economy more resilient during recessions, provide new jobs and improve productivity, the lobby group said. It would also inject an extra $52 billion into the New Zealand stock market by 2066.
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