FSC backs retirement reforms
The Financial Services Council (FSC) has reinforced the retirement commissioner’s recent push for a critical review of the KiwiSaver program, following the release of Te Ara Ahunga Ora’s comprehensive report on the scheme's effectiveness in preparing New Zealanders for retirement.
The report highlighted the urgent need for adjustments to address the retirement preparedness of Kiwis, particularly women and younger generations.
Addressing retirement preparedness
“New Zealanders deserve a dignified retirement,” FSC said in a blog post, citing its own research which shows that 56% of New Zealanders and 69% of Kiwi women feel financially unprepared for retirement.
FSC pointed to the average KiwiSaver balance of approximately $33,500 as inadequate for ensuring a quality life in retirement.
Given that KiwiSaver funds have reached the $100 billion mark, the FSC argued that now is the opportune time to reassess and revamp the scheme.
Collaborative efforts for a sustainable future
The FSC advocated for a government-led review of KiwiSaver that involves all major political parties and takes a long-term approach to retirement savings, aiming for sustainable outcomes by 2050 and beyond.
“A government review into KiwiSaver must involve all main political parties, be bi-partisan and take a long-term view of retirement savings outcomes for 2050 and beyond,” FSC said.
FSC’s role and recommendations
The FSC has been actively collaborating with its members to craft the FSC KiwiSaver Policy Priorities document. This document serves as a foundational guide for industry stakeholders, employers, and the government to enhance KiwiSaver’s impact.
“We look forward to a close working relationship with Te Ara Ahunga Ora, Retirement Commission, and our industry to advance the terms of the KiwiSaver review,” FSC said.
Click here to access the FSC’s Blueprint for Growth and KiwiSaver Policy Priorities.
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