Savers may be better off with govt fund: Treasury
As part of coalition negotiations in October, the Green Party asked Treasury to do some analysis of the cost to establish and run a default public KiwiSaver fund and the potential savings benefits for average KiwiSaver members at retirement.
A scheme administered by the Guardians of NZ Superannuation was one of the Green Party’s policies this election. NZ First also campaigned on a government-run scheme, KiwiFund. NZ First MP Fletcher Tabuteau’s KiwiFund Bill has been drawn from the member’s ballot but is yet to have its first reading.
Treasury said it would cost between $200,000 and $400,000 to register the scheme, including its disclosure documents and FMA licensing.
The initial design, scoping and analysis phase would cost $1 million, it said, most of which would come from professional advisory frees. “It is possible that such upfront costs could be recovered by the fees charged to fund investors.”
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