March 18, 2019
Kiwisaver holiday shortened
The acting Retirement Commissioner says changes to Kiwisaver should make it easier for many low income workers to put aside what they need to supplement their retirement.
The changes were passed by parliament last week and will take effect on April 1.
The include allowing people over 65 to join the scheme, allowing employers to make contributions for people over 65, introducing new contribution rates of 6 percent and 10 percent on top of the current 4 and 8 percent rates, and reducing the maximum contributions holiday that people can take from the scheme to one year.
Peter Cordtz says while a lot of Māori are enrolled on the scheme, many may have suspended payments because of day to day pressure and find it hard to resume saving.
Peter Cordtz says stopping contributions for five years had a significant impact and disrupted many people’s long-term savings.
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