Friday, 15 September 2006

KiwiSaver

NZ IRD have some info here on the new KiwiSaver scheme being launched in NZ. Basically a 'semi-forced' pensions savings plan that comes out of your salary automatically.

After being in NZ for two months watching some of the news/information coming out about it, I think most NZer's are totally confused about it and how it works. I know I am!

It's strange that it's acutally going ahead, as it sounds pretty similar to the compulsory Pension savings scheme that Winston Peters tried to set up a few years ago, but a national referendum rejected the scheme by like 90% of voters...

[Edit: the NZ Treasury website has posted a whole lot of info today as well here.
A couple of strange looking points:
1. The employee contributions are taxed - surely the government would offer a tax break on these contributions to encourage more people to join?? Employer contributions seem to be tax-free as far as I can see.
2. Personal savings become part of 'relationship property' - so if you get divorced/break up, this is counted as part of the relationship assets. Do ordinary pension schemes get treated this way also? Seems rather strange to me!]

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