Kiwis will miss out on comfortable retirement: FSC

It has this week sent all MPs an Infometrics report detailing how retirement incomes for employees can be doubled while leaving the NZ Super pension in place.

Chief Executive Peter Neilson said MPs had been told that unless KiwiSaver fund tax rates are cut and default investors are moved from conservative to balanced or growth KiwiSaver funds, most middle-income employees will be unable to achieve a comfortable retirement.

This advice is based on a new Infometrics report commissioned by the FSC which has been sent to MPs prior to the Budget and the start of the election campaign.

Neilson said the report showed that to fund a comfortable retirement at about two times NZ Super alone (currently $282 a week after tax for each of a couple) the most important drivers for KiwiSaver members, after  setting the right level of income to be saved were choosing the right KiwiSaver fu, then the tax paid on returns earned on KiwiSaver investments, and lastly the level of fees paid to KiwiSaver providers.