The results released over the weekend of an Investment Savings and Insurance Association (ISI) survey around KiwiSaver were interesting as it indicated that almost 2/3rds of Kiwisavers who were not members before the budget but were thinking of joining were no longer wanting to join up.
While survey results can often be biased by how the questions are asked if these results do lead to lower levels of new members signing up it would be very disappointing
I think National had thought they had pitched it about right by cutting the annual tax credit in half but not removing it. That is, still leave enough of an incentive to attract new members and not lose votes but also cut the Government’s ongoing Kiwisaver costs
This survey calls this into question
Have been running at around 20-30,000 new members a week and will be interesting to see what new member sign up levels are at over the next 6 months
The $1000 tax credit was well targeted as more meaningful for low/middle income earners and they are now the most likely to stop saving and yet they most need it
Now next year will be a half-way house now of lower incentives and no compulsion at a time when we were just starting to get traction on long-term savings outside of property – something the country desperately needs.