Kiwi Saver...........

Author
Discussion

Kylie

Original Poster:

4,391 posts

264 months

Thursday 21st June 2007
quotequote all
Is it going to be a black hole riddled with an uncertain future or a little gem for all to look forward to?

We are certainly out, for us its just another little tax cut going to unsecure investors, returns not as good as current investments set up anyway. However I would only recommend it to middle income earners who have bugger all assets or none! Will be hard for low income earners to add 4% but least it gets them something for the future even if its a struggle.

I also want my employer to continue with the generous pay rises too. I already sense from many employers (private small C0's)that annual payrises could be a thing of the past!!

We forget that a few generations ago here, they promised the future pensioners that their taxed income was for a generous retirement pension and basically everything taken care of. The pension of course was a slap in the face for our grandparents.frown

Just my 20c

Esprit

6,370 posts

290 months

Thursday 21st June 2007
quotequote all
It's Bullshit in my opinion.. I don't trust the government to manage ANYTHING for my retirement.... too open to abuse..... I'll do my own saving thanks smile

RobDickinson

31,343 posts

261 months

Thursday 21st June 2007
quotequote all
Its not awfully tempting.

$1k + $1kPA from .gov.nz and 4% or 8% of my sallary. Locked up in a fund I cant use for 30 years subject to any miserly rule change - and tax.

Worst of all my companies proposed contributions is effectivly sallary and I'd get it in hand otherwise.

The one aspect I'm intrested in exploring is the 2% towards your morgage (before tax), that with the .gov contributions may be worth it.

Kiwi Carguy

1,202 posts

223 months

Thursday 21st June 2007
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I don't agree with it.

We employ 26 people, much of whom don't save, I think that under 50% of them will take up the scheme. Simply because most of them live to the limit of their current wages and can't afford or don't want to make the sacrifices to provide the funds needed to contribute. One in particular is 18 y/o male and owes over $30K on a car and stuff as he puts it.

As an employer it really annoys me when Uncle Helen says that the employer will be subsidised and it will come at no cost to them. What about the time spent getting to grips with the scheme and then for the accounts person to manage the transactions, paper work etc. That time is money and we are not paid for that. More regulation for the employers to police on top of child support payments, tax, fines etc. Running the business there is only so much money in the kitty. If I have $20 a week available for a pay rise and then someone takes up KiwiSlaver and I have to contribute $20 that $20 I have in the kitty can only be spent once... it will result in LESS pay rises. Note I am referring to when the subsidy runs out.

Uncle Helen is running a Nanny state where the Government decide what we should drive, how we save, what we eat and so on. It's madness. madreaditbangheadideashootwhistle


Edited by Kiwi Carguy on Thursday 21st June 05:46

Esprit

6,370 posts

290 months

Thursday 21st June 2007
quotequote all
Kiwi Carguy said:
Uncle Helen is running a Nanny state where the Government decide what we should drive, how we save, what we eat and so on. It's madness. madreaditbangheadideashootwhistle
Don't worry, in a year she'll be lining up in her own dole queue*









  • might not be a dole queue, it might actually be a sickness or invalid benefit queue, can't have it contributing to the REAL level of unemplyment now can we?

Kylie

Original Poster:

4,391 posts

264 months

Thursday 21st June 2007
quotequote all
Kiwi Carguy said:
it will result in LESS pay rises. Note I am referring to when the subsidy runs out.




Edited by Kiwi Carguy on Thursday 21st June 05:46
Same here...our Co Jansen employs 17. Hubbys words to the staff; sign up no pay rises - simple!! hehe

RobDickinson

31,343 posts

261 months

Thursday 21st June 2007
quotequote all
Hasnt there been a drop in corporate tax which balances out the company contributions, I know this only affects larger businesses tho.

My company (Jade, largeish) is treating their contributions as pay rise effectivly too.

Kiwi XTR2

2,693 posts

239 months

Friday 22nd June 2007
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We've decided to forget the ramp up and offer 4% straight away for anyone who wants it. It will be taken into account at the next salary reviews however.

Looks like only 3 staff are interested at present.

V V V pleased there is not a single union member or collective agreement in the building.

dejoux

772 posts

290 months

Friday 22nd June 2007
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I probably shouldnt comment on a public forum given my occupation but George knows how I feel