Contribution rates rise tomorrow; good news for young Kiwis.
Milford’s General Manager of KiwiSaver and Investments Funds, Murray Harris joins Herald NOW Business to discuss the impact of changes to the scheme from tomorrow which will see both employee and employer contributions rise from 3% to 3.5% – and 16 and 17-year-olds become eligible for employer contributions. The changes signal that KiwiSaver is on the right pathway and is good news for young people who are on the savings ladder early in their working lives. But Harris says New Zealanders need to be saving even more and suggests we look at successful systems elsewhere in the world such as Australia where contributions are up to 12% of income.
