KiwiSaver compulsion not recommended ‘at this time’ - SWG
The report highlights the lack of savings as one of the major long-term economic issues facing New Zealand and calls for "urgent action" to increase national savings by 2-3% and move the Government from deficit to surplus before 2016.
"The main saving issue for New Zealand is that since the early 1970s New Zealand has not had sufficient savings for its own investment purposes," the report said.
"Consequently, New Zealand has had to rely on foreign savings to build its capital stock."
The SWG report outlines a number of recommendations to address the problem, among them changes to KiwiSaver including auto-enrolment of all employees, reducing the starting age for membership to 16 and increasing the default contribution rate to 4%, with the ability to opt down to 2%.
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