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Speaker 1: The Retirement Commissioner is pushing for changes to key we

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Speaker 1: savor at no extra cost to the taxpay And how

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Speaker 1: this would happen would be to increase the government's key

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Speaker 1: we save a contribution for people on lower incomes by

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Speaker 1: taking it away from people on higher incomes. Jane Wrightson

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Speaker 1: is the Retirement commission and with us now, Hyjane, Oh, you.

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Speaker 2: Make me sound so mean, Hello, Heather, Well.

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Speaker 1: It does it does? I mean, yeah, I mean Peter

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Speaker 1: to pay Paul, but Paul obviously needs it. So at

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Speaker 1: what point do you cut Peter off?

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Speaker 2: You cut Peter off at a relatively higher income level.

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Speaker 2: So what happened earlier this year is that the government

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Speaker 2: decided to reduce its contribution to two hundred and fifty

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Speaker 2: dollars a year. Right, So people on higher incomes that's nothing.

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Speaker 2: It's no motivation, it's no incentives, it's just nothing. So

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Speaker 2: people on lower incomes it makes a higher proportion of

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Speaker 2: their retirement savings over time. So the dilemma we face

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Speaker 2: when we published our review today, which is quite a

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Speaker 2: wide ranging look at what needs to change, is that

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Speaker 2: there are a couple of things that are really quite important.

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Speaker 2: One is thinking harder around parental even how to cover

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Speaker 2: that and fund that properly so that people taking leave

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Speaker 2: don't lose too much of their savings ability. And thinking

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Speaker 2: also about temporary migrants and how to attract them and

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Speaker 2: to stay in New Zealand, and that would be to

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Speaker 2: actually a joining gimisava, which I can't currently do. So

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Speaker 2: the problem about all that was, of course, we sit

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Speaker 2: at a fiscal envelope. As they say, the total government

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Speaker 2: spend on government contributions right now is about five hundred

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Speaker 2: and forty five million. Now I knew if I went

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Speaker 2: to Minister Willis and said could I have a few

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Speaker 2: squillion dollars to do something new, she would laugh at me,

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Speaker 2: so as she does with everybody else who says could

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Speaker 2: I have a few squillion dollars? So we worked within

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Speaker 2: the fiscal envelope and thought quite hard about whether where

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Speaker 2: the government contributions matter the most right and they matter

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Speaker 2: the most to people on lower income, For people that

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Speaker 2: earning less than thirty thousand, the government contribution and used

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Speaker 2: to be about fifteen or twenty percent of their total

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Speaker 2: key savor balance at age sixty five, and following the

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Speaker 2: changes in this year's budget, it's going to be around

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Speaker 2: a heaven. For people over one hundred and eighty thousand

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Speaker 2: now don't get anything because that was wiped. So the

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Speaker 2: rich people are all dune. And for members earning say

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Speaker 2: over one hundred thousand dollars a year, the government contribution

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Speaker 2: fell from about five percent of people's balance to about

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Speaker 2: one percent. And I don't know anybody earning six figures

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Speaker 2: who thinks that two fifty dollars a year is meaningful. Therefore,

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Speaker 2: let's put it somewhere where it is meaningful.

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Speaker 1: That's a good point rather John, thank you very much.

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Speaker 1: I do appreciate your time so much. As Jane write

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Speaker 1: some Deborah Retirement Commissioner Deborah is on my Brain. For

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Speaker 1: more from Heather Duplessy Allen Drive, listen live to news

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Speaker 1: talks that'd be from four pm weekdays, or follow the

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