1 00:00:03,600 --> 00:00:07,160 Speaker 1: Kia Koto. Welcome to Shared Lunch. I'm Garth Bray. How 2 00:00:07,280 --> 00:00:11,480 Speaker 1: safe are your key we Saver balancers from political changes? 3 00:00:11,680 --> 00:00:14,520 Speaker 1: It's a big topic. So I'm with Greg Smith from 4 00:00:14,560 --> 00:00:18,000 Speaker 1: Generate Keywi Saver and Matt McPherson from Chaersa's to talk 5 00:00:18,040 --> 00:00:21,280 Speaker 1: about what's going on with Kei we Saver, what could happen, 6 00:00:21,600 --> 00:00:24,400 Speaker 1: and maybe even what should happen. Before we get to that, 7 00:00:24,720 --> 00:00:28,280 Speaker 1: some important information you should always consider when thinking about investing. 8 00:00:28,520 --> 00:00:31,080 Speaker 2: Investing involves the risk you might lose the money you 9 00:00:31,120 --> 00:00:34,440 Speaker 2: start with. We recommend talking to a licensed financial advisor. 10 00:00:35,120 --> 00:00:38,960 Speaker 2: We also recommend reading product disclosure documents before deciding to invest. 11 00:00:39,240 --> 00:00:41,640 Speaker 2: Everything you're about to see and here is current at 12 00:00:41,640 --> 00:00:42,479 Speaker 2: the time of recording. 13 00:00:42,680 --> 00:00:47,199 Speaker 1: Greg and Matt welcome. Look fittingly Generates now on the 14 00:00:47,320 --> 00:00:49,360 Speaker 1: Shares's platforms, so that it's going to have both of 15 00:00:49,360 --> 00:00:51,600 Speaker 1: you here, which is great. Had that come about. 16 00:00:51,880 --> 00:00:55,800 Speaker 3: We basically respond to what our customers demand and they 17 00:00:55,840 --> 00:00:57,720 Speaker 3: really wanted us to add some more funds to our 18 00:00:57,800 --> 00:01:00,640 Speaker 3: QVSAB platform. Generate was a name that just keept on 19 00:01:00,680 --> 00:01:02,600 Speaker 3: coming up again and again for you know, all the 20 00:01:02,680 --> 00:01:03,240 Speaker 3: right reasons. 21 00:01:03,280 --> 00:01:05,440 Speaker 1: So the look of love there. 22 00:01:07,160 --> 00:01:08,840 Speaker 4: So much it's a bromance already. 23 00:01:09,040 --> 00:01:10,919 Speaker 1: Find a fund manager who looks at you like generate 24 00:01:11,000 --> 00:01:13,400 Speaker 1: that Yeah. Hey, look so we're talking Kiwi. 25 00:01:13,240 --> 00:01:15,240 Speaker 4: Saver, and just before we go on there, it is 26 00:01:15,319 --> 00:01:19,360 Speaker 4: great to be partnering with a provider that is passionate 27 00:01:19,400 --> 00:01:23,720 Speaker 4: about educating Kiwik's about the retirements as well. 28 00:01:23,840 --> 00:01:25,679 Speaker 1: Look, so if we're talking Kei we Saver and what's 29 00:01:25,720 --> 00:01:27,319 Speaker 1: at stake and what could be I'd like to do 30 00:01:27,800 --> 00:01:30,319 Speaker 1: three things if you're up for it, right, Obviously, what 31 00:01:30,319 --> 00:01:32,000 Speaker 1: you're seeing and hearing in the market, you know, give 32 00:01:32,080 --> 00:01:33,840 Speaker 1: us a bit of an idea about what's happening out there. 33 00:01:34,000 --> 00:01:35,920 Speaker 1: Number two, what are the changes that you think are 34 00:01:35,959 --> 00:01:38,399 Speaker 1: landing out the last year's budget that are really important 35 00:01:38,400 --> 00:01:41,440 Speaker 1: to note and alsocuse? Number three, what are we missing 36 00:01:41,480 --> 00:01:43,319 Speaker 1: what needs to sort of go to from there? But 37 00:01:43,360 --> 00:01:45,080 Speaker 1: I want to give you guys your flowers first, right, 38 00:01:45,160 --> 00:01:48,240 Speaker 1: The latest Morning Star data on key We SAB funds 39 00:01:48,240 --> 00:01:50,280 Speaker 1: came out this week. Scorecard if you like. For December 40 00:01:50,360 --> 00:01:54,080 Speaker 1: quarter assets, I think one hundred and forty five billion 41 00:01:54,760 --> 00:01:57,800 Speaker 1: rising five billion this quarter combination of market returns and 42 00:01:57,800 --> 00:01:59,800 Speaker 1: across the board the rest of it. So for shares, 43 00:01:59,840 --> 00:02:01,960 Speaker 1: it I think very new to the board, but like 44 00:02:02,160 --> 00:02:07,440 Speaker 1: seventy percent growth obviously year on year. It's pretty pretty remarkable, 45 00:02:07,440 --> 00:02:08,720 Speaker 1: isn't it. And funds under management? 46 00:02:08,960 --> 00:02:11,400 Speaker 3: Yeah, I mean we're seeing that switching market really active 47 00:02:11,560 --> 00:02:13,640 Speaker 3: in New Zealand. I think as balancers get higher, people 48 00:02:13,680 --> 00:02:16,560 Speaker 3: are more interested in where their keyp savers invested, and 49 00:02:16,600 --> 00:02:18,000 Speaker 3: so people are shopping around. 50 00:02:18,000 --> 00:02:18,800 Speaker 5: Quite a bit more. 51 00:02:19,760 --> 00:02:21,760 Speaker 3: You know, we have relationships with a lot of New 52 00:02:21,800 --> 00:02:25,519 Speaker 3: Zealanders already for our arresting platform, so they're checking us out. 53 00:02:25,320 --> 00:02:28,040 Speaker 1: And for Generate number six behind two big banks and 54 00:02:28,080 --> 00:02:30,760 Speaker 1: three pretty established key we saber providers in terms of 55 00:02:30,760 --> 00:02:33,040 Speaker 1: funds under management, and I think when I checked was 56 00:02:33,080 --> 00:02:36,480 Speaker 1: about twenty six percent growth year on year. How do 57 00:02:36,520 --> 00:02:37,760 Speaker 1: you do that? Yeah, we're really happy. 58 00:02:38,280 --> 00:02:40,400 Speaker 4: A testament to the I suppose the growth and fun 59 00:02:40,480 --> 00:02:44,560 Speaker 4: we've had so focused growth number two over ten years, 60 00:02:44,600 --> 00:02:48,120 Speaker 4: it's been top three of requarter since has been eligible 61 00:02:49,040 --> 00:02:51,320 Speaker 4: likewise for the moderate, So I think that sort of 62 00:02:51,320 --> 00:02:54,280 Speaker 4: really helps. You know, how you talk about switching, your 63 00:02:54,360 --> 00:02:57,680 Speaker 4: switching rates around about half of the market. I've said, 64 00:02:57,680 --> 00:03:00,359 Speaker 4: it's really easy to switch provides. We've got a really 65 00:03:00,360 --> 00:03:05,400 Speaker 4: stable investment team and a growing investment team and literally anyone. 66 00:03:05,440 --> 00:03:07,800 Speaker 4: No one's left. I don't think the CIO has ever 67 00:03:07,840 --> 00:03:09,840 Speaker 4: had a resignation letter and they are a great team, 68 00:03:10,160 --> 00:03:13,560 Speaker 4: so that really helps in terms of delivering those consistent returns. 69 00:03:13,600 --> 00:03:17,680 Speaker 4: You know, we've seen our own farm grow around twenty 70 00:03:17,919 --> 00:03:20,160 Speaker 4: as you nor for twenty five percent, or over eight 71 00:03:20,160 --> 00:03:23,680 Speaker 4: and a half billion, and members have grown fifteen percent, 72 00:03:23,800 --> 00:03:26,120 Speaker 4: so around about one hundred and eighty five thousand. So 73 00:03:26,280 --> 00:03:28,840 Speaker 4: really proud of that. Obviously, with the help of partnering 74 00:03:28,880 --> 00:03:32,280 Speaker 4: with the likes of Cheersys as well. And yeah, balances 75 00:03:32,280 --> 00:03:36,240 Speaker 4: are becoming meaningful. Our average balance is over forty five 76 00:03:36,280 --> 00:03:39,400 Speaker 4: thousand now, which again is quite quite away north of 77 00:03:39,120 --> 00:03:40,200 Speaker 4: the market average. 78 00:03:40,200 --> 00:03:41,920 Speaker 1: So you're at thirty six k. I thank you. It's 79 00:03:42,000 --> 00:03:43,360 Speaker 1: quite a big beat. Yeah, that's right. 80 00:03:43,400 --> 00:03:45,280 Speaker 4: So you know, we're going to obviously talk about that, 81 00:03:45,320 --> 00:03:47,680 Speaker 4: but yeah, we do feel it's really important that people 82 00:03:47,680 --> 00:03:49,680 Speaker 4: who are educated about Key Saber. 83 00:03:49,720 --> 00:03:50,200 Speaker 1: It's growing. 84 00:03:50,240 --> 00:03:53,040 Speaker 4: You know, we're coming up to twenty anniversary for Key Saber. 85 00:03:53,480 --> 00:03:56,880 Speaker 4: It's been great, but we probably can do more. I 86 00:03:56,920 --> 00:03:58,840 Speaker 4: think it was a survey saying that forty percent of 87 00:03:58,840 --> 00:04:02,840 Speaker 4: people still don't feel prepared for retirement, so we need 88 00:04:02,880 --> 00:04:05,440 Speaker 4: to look at you know, perhaps some more changes there, 89 00:04:05,480 --> 00:04:06,839 Speaker 4: but you're really happy with the way it's going. 90 00:04:06,960 --> 00:04:08,560 Speaker 1: Can we talk a bit about the market as it 91 00:04:08,560 --> 00:04:12,200 Speaker 1: stands at the moment Greek? Where are those funds putting that? 92 00:04:12,520 --> 00:04:15,160 Speaker 1: And obviously it's very vary depending on whether it's a 93 00:04:16,040 --> 00:04:18,680 Speaker 1: single sect of fund or a multi sector fund. You know, 94 00:04:18,720 --> 00:04:21,480 Speaker 1: you balanced to your growth or whatever. But just I mean, 95 00:04:21,520 --> 00:04:22,960 Speaker 1: can you distill it in any way? Are there any 96 00:04:22,960 --> 00:04:25,240 Speaker 1: big trends that you're noticing at the moment? 97 00:04:25,320 --> 00:04:27,800 Speaker 4: I suppose you know, when you're with a fund manager, 98 00:04:27,839 --> 00:04:31,760 Speaker 4: you know you're getting expertise, you're getting a diversified fund, 99 00:04:31,839 --> 00:04:33,800 Speaker 4: so you're not putting all your eggs in one basket, 100 00:04:34,160 --> 00:04:36,640 Speaker 4: and you're getting someone who's basically in a team basically 101 00:04:36,640 --> 00:04:39,960 Speaker 4: that are spending all their time on this that is 102 00:04:40,000 --> 00:04:43,560 Speaker 4: their job, which should mean that we're getting the returns 103 00:04:43,560 --> 00:04:45,800 Speaker 4: better than someone liter you're trying to do it themselves 104 00:04:45,839 --> 00:04:50,880 Speaker 4: on the side. So diversified portfolios are important. But obviously yeah, 105 00:04:50,960 --> 00:04:53,680 Speaker 4: and I suppose the other thing that's important is not 106 00:04:53,800 --> 00:04:56,920 Speaker 4: reacting to noise. And we've had a lot of noise 107 00:04:57,400 --> 00:05:00,520 Speaker 4: over the last twelve months. It's continued to this year. 108 00:05:00,560 --> 00:05:03,039 Speaker 1: Twelve minutes it feels like, yeah, it's happening. 109 00:05:03,040 --> 00:05:05,120 Speaker 4: Something at me every minute. You're quite right, you know, 110 00:05:05,160 --> 00:05:08,320 Speaker 4: whether it was the trade wars, the tariffs. Last year 111 00:05:08,440 --> 00:05:11,360 Speaker 4: we've had even forgotten about Venezuela, but we're that, and 112 00:05:11,360 --> 00:05:13,760 Speaker 4: then we had Greenland, and then we've had trade more 113 00:05:13,800 --> 00:05:18,159 Speaker 4: trade frictions. But yeah, it's maintaining discipline and certainly encouraging 114 00:05:18,279 --> 00:05:22,120 Speaker 4: those looking at key Saber generally don't let your emotions 115 00:05:22,640 --> 00:05:26,160 Speaker 4: dictate what is a long term retirement plan. 116 00:05:26,240 --> 00:05:27,080 Speaker 1: We saw that last year. 117 00:05:27,120 --> 00:05:31,000 Speaker 4: We saw people that reacted, you know to what happened 118 00:05:31,000 --> 00:05:35,200 Speaker 4: in April and Liberation Day, that switched plans or did 119 00:05:35,200 --> 00:05:39,040 Speaker 4: something sort of rash actually mostly would end up regretting 120 00:05:39,040 --> 00:05:41,720 Speaker 4: that sort of twelve months later. So I think, yeah, 121 00:05:41,760 --> 00:05:45,480 Speaker 4: discipline's really important, doing your homework, compasses, there's a lot 122 00:05:45,520 --> 00:05:50,000 Speaker 4: of that, thorough analysis, and yeah, and just not not 123 00:05:50,400 --> 00:05:54,680 Speaker 4: kneejic reactions. I suppose, which are it's easier not to 124 00:05:54,680 --> 00:05:56,880 Speaker 4: do when you're sort of a seasoned professional suppose. 125 00:05:56,839 --> 00:05:59,640 Speaker 1: And I suppose leaving it to those seasons professionals to 126 00:05:59,680 --> 00:06:01,240 Speaker 1: and two for it, Like, what does it mean that 127 00:06:01,320 --> 00:06:04,120 Speaker 1: the market seems to be switching away from you know, 128 00:06:04,360 --> 00:06:07,760 Speaker 1: tech stocks at the moment and moving more aggressively energy, 129 00:06:07,800 --> 00:06:10,080 Speaker 1: for example, because those sectors seem to be bouncing around. 130 00:06:10,080 --> 00:06:12,240 Speaker 1: If you're trying to follow those trends just by reading 131 00:06:12,279 --> 00:06:14,479 Speaker 1: the papers and keeping up with them, you're always going 132 00:06:14,520 --> 00:06:16,320 Speaker 1: to be a step behind. You think, yeah, that's right. 133 00:06:16,360 --> 00:06:16,560 Speaker 5: I think. 134 00:06:16,600 --> 00:06:19,359 Speaker 4: You know, sometimes it gets a little bit dangerous with headlines. 135 00:06:19,360 --> 00:06:22,080 Speaker 4: And it wasn't that long ago, a few weeks ago, 136 00:06:22,080 --> 00:06:24,440 Speaker 4: that we're all talking about gold. You know, obviously gold 137 00:06:24,480 --> 00:06:28,560 Speaker 4: has got to a record high three hundred an ounce, 138 00:06:29,080 --> 00:06:31,560 Speaker 4: and we actually had people and I talked to people 139 00:06:31,680 --> 00:06:33,800 Speaker 4: presentations and stuff going should I put on my keepy 140 00:06:33,880 --> 00:06:34,719 Speaker 4: savor into gold? 141 00:06:35,080 --> 00:06:35,320 Speaker 2: Now? 142 00:06:35,920 --> 00:06:39,279 Speaker 4: It's sort of no trend goes parabolic forever. And we 143 00:06:39,360 --> 00:06:41,200 Speaker 4: saw that, you know, gold I think fell around about 144 00:06:41,200 --> 00:06:44,680 Speaker 4: twenty percent in one day. It's recovered, certain so still 145 00:06:44,680 --> 00:06:47,000 Speaker 4: down there quite a few percent, but it just shows, 146 00:06:47,040 --> 00:06:51,000 Speaker 4: you know, sometimes emotions can can dictate things. It's just 147 00:06:51,080 --> 00:06:54,640 Speaker 4: also like putting all your exit into one basket for stocks. 148 00:06:54,839 --> 00:06:57,280 Speaker 4: You know, we've seen we talk about the tech stocks, 149 00:06:57,279 --> 00:06:59,480 Speaker 4: and we've had the arning season which has already thrown 150 00:06:59,480 --> 00:07:02,640 Speaker 4: a few surprises. We've had some winners like Meta, but 151 00:07:02,680 --> 00:07:05,640 Speaker 4: then we've had stocks like Microsoft, which have fallen ten 152 00:07:05,680 --> 00:07:08,240 Speaker 4: percent in a day. So and then on the other side, 153 00:07:08,240 --> 00:07:10,800 Speaker 4: you know you're also going to maintain some discipline around that. Now, 154 00:07:10,920 --> 00:07:13,280 Speaker 4: just because of stock fell ten percent, does that mean 155 00:07:13,320 --> 00:07:16,240 Speaker 4: it's no longer worthy of being in a portfolio or 156 00:07:16,280 --> 00:07:19,160 Speaker 4: is it actually worth taking the other side? So I 157 00:07:19,200 --> 00:07:21,040 Speaker 4: think that's important as well. You know, when you're with 158 00:07:21,120 --> 00:07:25,680 Speaker 4: the seasoned professional, what we're also doing is literally putting 159 00:07:25,720 --> 00:07:28,520 Speaker 4: every stock we're in or potentially get looking to get 160 00:07:28,520 --> 00:07:31,160 Speaker 4: into under the microscope. There's a there's a model backing 161 00:07:31,200 --> 00:07:33,440 Speaker 4: that and coming to our own view of what the 162 00:07:33,520 --> 00:07:35,960 Speaker 4: valuation is there. So yeah, discipline really important. 163 00:07:36,280 --> 00:07:37,760 Speaker 1: I feel like I've got to bring you in here 164 00:07:37,800 --> 00:07:40,600 Speaker 1: at this point, Matt, because obviously Shesys gives people the 165 00:07:40,680 --> 00:07:42,800 Speaker 1: chance to sort of build their own key we saver 166 00:07:42,960 --> 00:07:45,120 Speaker 1: and set their own fund. How is that looking at 167 00:07:45,120 --> 00:07:46,880 Speaker 1: the moment with the volatility that's going on. 168 00:07:47,080 --> 00:07:49,720 Speaker 3: Yeah, I think the other thing that's coming to play 169 00:07:49,720 --> 00:07:51,640 Speaker 3: in the last quarter, probably more than it has for 170 00:07:51,640 --> 00:07:54,120 Speaker 3: a while as the currency as well. So what some 171 00:07:54,120 --> 00:07:56,360 Speaker 3: people have said is, hang on, I'm looking at you know, 172 00:07:56,360 --> 00:07:59,480 Speaker 3: the SMP sort of bobbling along pretty much flat. 173 00:07:59,480 --> 00:08:01,800 Speaker 5: But yet my QV savers down? How can this be? 174 00:08:02,920 --> 00:08:05,680 Speaker 3: And so we're educating people around the impact of the currency. 175 00:08:05,680 --> 00:08:08,800 Speaker 3: And it wasn't so much in New Zealand's dollar strengthening. 176 00:08:08,840 --> 00:08:11,240 Speaker 3: It was it was just the weakening of the US dollar. 177 00:08:11,960 --> 00:08:13,800 Speaker 3: And at least some people sort of scratching their heads 178 00:08:13,800 --> 00:08:16,760 Speaker 3: wondering why the asset prices are not down but their 179 00:08:16,840 --> 00:08:19,240 Speaker 3: QV savers down, Like, you know, where's the money you've 180 00:08:19,240 --> 00:08:20,000 Speaker 3: operated into? 181 00:08:21,200 --> 00:08:22,760 Speaker 5: But yeah, back to our scheme. 182 00:08:24,160 --> 00:08:26,960 Speaker 3: Uh, you know, New Zealand was a bit unique in 183 00:08:27,000 --> 00:08:30,240 Speaker 3: that it didn't have any real self directed investing for 184 00:08:30,400 --> 00:08:34,120 Speaker 3: people outside of advised portfolios with regard to qvsavers. So 185 00:08:34,520 --> 00:08:36,880 Speaker 3: if you look overseas, it's relatively commonplace and all the 186 00:08:36,960 --> 00:08:40,760 Speaker 3: advanced markets to have some element. And the way people 187 00:08:40,880 --> 00:08:43,719 Speaker 3: told us that not wasn't Oh I looked overseas and 188 00:08:43,760 --> 00:08:46,160 Speaker 3: I want to have self directed investing. They simply told 189 00:08:46,240 --> 00:08:49,400 Speaker 3: us they wanted more control over where their KIV saver 190 00:08:49,679 --> 00:08:53,360 Speaker 3: was and in many cases they they wanted a connection 191 00:08:53,440 --> 00:08:56,240 Speaker 3: to it. And that connection may have been ethical, it 192 00:08:56,280 --> 00:08:59,120 Speaker 3: could have actually just been performance based. You know, I 193 00:08:59,600 --> 00:09:02,240 Speaker 3: believe in gold and I want to put five percent 194 00:09:02,280 --> 00:09:05,439 Speaker 3: of my keep saver into gold. For example, but what 195 00:09:05,480 --> 00:09:09,680 Speaker 3: we see is around half of our customers are doing 196 00:09:09,760 --> 00:09:13,880 Speaker 3: some self directed and that sounds like quite a large proportion, 197 00:09:14,280 --> 00:09:16,679 Speaker 3: and then you go, but actually it's fifteen percent of 198 00:09:16,720 --> 00:09:20,360 Speaker 3: the overall contributions that are going into people's own picks. 199 00:09:20,920 --> 00:09:23,559 Speaker 3: People told us that they wanted some control, but they 200 00:09:23,920 --> 00:09:27,160 Speaker 3: certainly didn't want to, you know, ultimate control. 201 00:09:26,800 --> 00:09:29,040 Speaker 5: Over that or or the responsibility. 202 00:09:29,080 --> 00:09:32,559 Speaker 3: Yeah, and so we're seeing that play out, I think 203 00:09:32,640 --> 00:09:36,520 Speaker 3: quite nicely. We have this gard rail kind of thing 204 00:09:36,559 --> 00:09:40,240 Speaker 3: that limits to five percent, and evaluations of companies go up. 205 00:09:41,400 --> 00:09:44,199 Speaker 3: You know, we go through a sort of progressive, progressive 206 00:09:44,320 --> 00:09:46,600 Speaker 3: sort of system of ensuring they don't end up in 207 00:09:46,600 --> 00:09:49,800 Speaker 3: a highly concentrated position. And I think what's interesting is 208 00:09:49,840 --> 00:09:52,400 Speaker 3: people would say, oh yeah, because you know, Rocket Lab 209 00:09:52,480 --> 00:09:56,040 Speaker 3: and Polunteer and all these big US companies are going 210 00:09:56,080 --> 00:09:56,840 Speaker 3: to create problems. 211 00:09:57,160 --> 00:09:57,600 Speaker 5: Guess what. 212 00:09:58,360 --> 00:10:02,559 Speaker 3: Fonterra is the one in everyone's portfolios that has gone 213 00:10:02,640 --> 00:10:05,480 Speaker 3: up by such a significant amount with the sale of 214 00:10:05,520 --> 00:10:08,800 Speaker 3: the consumer brands, and some of our people who have 215 00:10:08,840 --> 00:10:12,120 Speaker 3: selected fon Terror as one of their companies are now 216 00:10:12,160 --> 00:10:15,360 Speaker 3: having to think about concentration risk and how we can 217 00:10:15,360 --> 00:10:16,400 Speaker 3: help them manage through that. 218 00:10:16,440 --> 00:10:18,520 Speaker 1: It's a good concentration risk to have at the moment 219 00:10:18,559 --> 00:10:21,360 Speaker 1: with the price. I think the dairy pulse this morning 220 00:10:21,400 --> 00:10:23,800 Speaker 1: was sort of up again, so yeah, but I get 221 00:10:23,840 --> 00:10:26,040 Speaker 1: the fact that it's it's got to come down at 222 00:10:26,080 --> 00:10:29,079 Speaker 1: some point too, right, Yeah, yeah, yeah. I guess if 223 00:10:29,080 --> 00:10:33,640 Speaker 1: you're thinking about growth, how much of that you've seen 224 00:10:33,760 --> 00:10:36,640 Speaker 1: generate is returns and how much of its inflows people 225 00:10:36,679 --> 00:10:38,520 Speaker 1: coming in new business if you like, maybe this is 226 00:10:38,559 --> 00:10:39,520 Speaker 1: trade secret material. 227 00:10:39,559 --> 00:10:42,640 Speaker 4: Oh it's not sure. It's a combination. That sounds like 228 00:10:42,640 --> 00:10:45,720 Speaker 4: a fluffy answer, but it is a conturbation combination. We 229 00:10:45,760 --> 00:10:48,160 Speaker 4: have seen markets go up, you know, we've seen our 230 00:10:48,160 --> 00:10:51,640 Speaker 4: members go up by fifteen percent. Obviously people we've got 231 00:10:51,640 --> 00:10:53,880 Speaker 4: a high contribution rate as so it's also being you 232 00:10:54,000 --> 00:10:56,679 Speaker 4: to talk about being in the right the right fund 233 00:10:56,720 --> 00:11:01,200 Speaker 4: as well. So around about eighty percent of our members 234 00:11:01,200 --> 00:11:04,839 Speaker 4: are in growth funds, so that's not quite double but 235 00:11:05,320 --> 00:11:07,120 Speaker 4: in terms of the market average. So that's been a 236 00:11:07,120 --> 00:11:08,840 Speaker 4: real benefit as well being in the right funds and 237 00:11:08,840 --> 00:11:13,760 Speaker 4: obviously enjoying you know, that performance that has taken place 238 00:11:13,760 --> 00:11:17,720 Speaker 4: over the past twelve months and beyond. And also, as 239 00:11:17,760 --> 00:11:21,079 Speaker 4: I mentioned, retaining customer's important. You know, once you get 240 00:11:21,080 --> 00:11:22,920 Speaker 4: a customer it's important to look after and I think 241 00:11:22,920 --> 00:11:25,880 Speaker 4: that's less than any any business. So you know, talked 242 00:11:25,880 --> 00:11:28,960 Speaker 4: about investment performance, but yeah, we're really proud of the 243 00:11:28,960 --> 00:11:32,600 Speaker 4: fact in terms of the accolades we get for customer 244 00:11:32,640 --> 00:11:35,680 Speaker 4: service and that's something we really invest in as well. 245 00:11:35,880 --> 00:11:38,320 Speaker 1: Those There's something else Mornings that I picked up, of course, 246 00:11:38,360 --> 00:11:41,320 Speaker 1: that the aggressive category average has given investors and annualized 247 00:11:41,360 --> 00:11:43,600 Speaker 1: return a nine point five percent, followed by growth eight 248 00:11:43,640 --> 00:11:47,520 Speaker 1: point two, balance six nine, moderate five conservative four. I 249 00:11:47,559 --> 00:11:49,960 Speaker 1: mean a few are more than ten years from retiring. 250 00:11:50,000 --> 00:11:52,760 Speaker 1: Why would you be in anything other than a very aggressive, 251 00:11:53,120 --> 00:11:54,200 Speaker 1: very aggressive kind of fund. 252 00:11:54,320 --> 00:11:57,040 Speaker 3: It's the most important thing to understand is your is 253 00:11:57,080 --> 00:12:01,600 Speaker 3: your investment horizon and your tolerant it's for volatility. If 254 00:12:01,600 --> 00:12:05,000 Speaker 3: you do those two things, it'll probably tell you. You know, 255 00:12:05,240 --> 00:12:08,920 Speaker 3: aggressive funds generally are seven, eight, ten years. 256 00:12:09,080 --> 00:12:09,400 Speaker 5: Is the. 257 00:12:11,080 --> 00:12:14,320 Speaker 3: Is the timeline over which that you know, people are 258 00:12:14,360 --> 00:12:16,600 Speaker 3: advised on it. So yeah, that makes sense, and I 259 00:12:16,600 --> 00:12:19,000 Speaker 3: guess it just goes to show across all those managers 260 00:12:19,000 --> 00:12:24,520 Speaker 3: just how important their allocation is and it just comes 261 00:12:24,520 --> 00:12:25,559 Speaker 3: home time and time again. 262 00:12:25,760 --> 00:12:27,719 Speaker 4: Yeah, and I'm just am saying that as well. But 263 00:12:27,760 --> 00:12:30,360 Speaker 4: obviously growth has been the place to be. But yeah, 264 00:12:30,480 --> 00:12:33,079 Speaker 4: on the same token, it's not a one size fits 265 00:12:33,120 --> 00:12:36,880 Speaker 4: all scheme. There there is choice, And I think the 266 00:12:36,880 --> 00:12:39,000 Speaker 4: other great thing what we also really encourage as well 267 00:12:39,040 --> 00:12:42,280 Speaker 4: as advice. So ninety percent of our members sort of 268 00:12:42,280 --> 00:12:45,160 Speaker 4: come through advisors, So you know, we really sort of 269 00:12:45,240 --> 00:12:49,120 Speaker 4: encourage that and just appreciate that it's not quite one 270 00:12:49,160 --> 00:12:49,880 Speaker 4: size fits all. 271 00:12:50,000 --> 00:12:51,880 Speaker 1: The default. I think if you're in a key, we 272 00:12:51,960 --> 00:12:53,760 Speaker 1: save a scheme, you sign up, you know, your day 273 00:12:53,800 --> 00:12:55,559 Speaker 1: one on the job or whatever. The default is into 274 00:12:55,600 --> 00:12:58,280 Speaker 1: a balanced fund. Is that still sensible? 275 00:12:58,559 --> 00:13:01,120 Speaker 3: Originally people were defaulted in conservative fund and I think 276 00:13:01,120 --> 00:13:05,240 Speaker 3: that was the wrong thing. I feel pretty comfortable, especially 277 00:13:05,240 --> 00:13:08,360 Speaker 3: because when you're starting out. There's two arguments here. One 278 00:13:08,440 --> 00:13:10,120 Speaker 3: is that time is on your side and you should 279 00:13:10,160 --> 00:13:12,360 Speaker 3: have the maximum exposure at the risk. The other is 280 00:13:12,400 --> 00:13:15,200 Speaker 3: probably the balance is small to start with, and so 281 00:13:16,000 --> 00:13:18,000 Speaker 3: you know, a percentage of a small balance is still 282 00:13:18,000 --> 00:13:18,679 Speaker 3: a small number. 283 00:13:19,840 --> 00:13:23,040 Speaker 5: But yeah, I don't have a problem. 284 00:13:23,200 --> 00:13:25,560 Speaker 4: But there's youuld. So I suppose that defaults comes back 285 00:13:25,640 --> 00:13:33,040 Speaker 4: to education, empowerment, get getting advice and because yeah, some 286 00:13:33,080 --> 00:13:35,199 Speaker 4: people who just sort of sit there sit there in defaults. 287 00:13:35,559 --> 00:13:38,840 Speaker 4: There's a system it's been going for eighteen nineteen years. 288 00:13:38,920 --> 00:13:42,280 Speaker 4: Eighteen years, I think it is. It's been great, but 289 00:13:42,760 --> 00:13:46,200 Speaker 4: it's certainly not not perfect. So I think it's important 290 00:13:46,200 --> 00:13:48,040 Speaker 4: to sort of and I think more people were becoming 291 00:13:48,040 --> 00:13:48,679 Speaker 4: aware of that. 292 00:13:48,760 --> 00:13:49,120 Speaker 5: You know that. 293 00:13:50,640 --> 00:13:51,800 Speaker 4: But yeah, there's a lot more to do. I mean, 294 00:13:51,800 --> 00:13:53,959 Speaker 4: look at you more than things. About thirty percent of 295 00:13:54,000 --> 00:13:55,760 Speaker 4: more's still not contributing. 296 00:13:55,840 --> 00:13:58,280 Speaker 1: So I sort of touch on fees quickly because that's 297 00:13:58,320 --> 00:14:00,240 Speaker 1: something else that I think the Morning Star people pick up. 298 00:14:00,280 --> 00:14:03,440 Speaker 1: Average fee is around point eighty one of a cent 299 00:14:03,520 --> 00:14:05,640 Speaker 1: per dollar invested. I think FMA when they were talking 300 00:14:05,679 --> 00:14:08,719 Speaker 1: back reviewing sort of key we say, ve anually said 301 00:14:08,760 --> 00:14:10,600 Speaker 1: it was more like about point seven, so a bit 302 00:14:10,600 --> 00:14:12,800 Speaker 1: of a drift up there. People paying more for what 303 00:14:12,800 --> 00:14:13,320 Speaker 1: they're getting. 304 00:14:14,320 --> 00:14:17,840 Speaker 4: We've actually been reducing our fees as scale grows, and 305 00:14:17,880 --> 00:14:20,880 Speaker 4: we don't charge performance fees either, so obviously it's an 306 00:14:20,880 --> 00:14:22,960 Speaker 4: important thing to look at. But that said, you know, 307 00:14:23,400 --> 00:14:25,480 Speaker 4: I suppose you get what you pay for sometimes as well. 308 00:14:25,600 --> 00:14:27,840 Speaker 4: So if you'll get and again this is back to 309 00:14:27,840 --> 00:14:30,200 Speaker 4: sort of the education and people making their own minds 310 00:14:30,280 --> 00:14:33,520 Speaker 4: up and also getting advice, is you are the fees 311 00:14:33,560 --> 00:14:37,240 Speaker 4: you're paying reflective of the performance and service you're getting 312 00:14:37,240 --> 00:14:38,840 Speaker 4: on the other side, and that's that's probably true of 313 00:14:38,880 --> 00:14:39,680 Speaker 4: anything in life, you know. 314 00:14:39,880 --> 00:14:42,240 Speaker 3: I think it's been good focus on fees over the 315 00:14:42,320 --> 00:14:46,440 Speaker 3: last five to ten years and it's brought them down. However, 316 00:14:46,840 --> 00:14:49,280 Speaker 3: if you look overseas, you know one percent is the 317 00:14:49,320 --> 00:14:52,880 Speaker 3: standard across the world for any sort of investment management. Australia, 318 00:14:53,000 --> 00:14:56,120 Speaker 3: you know, super scheme is thirty seven or thirty eight 319 00:14:56,200 --> 00:14:59,440 Speaker 3: times larger. And William guess what the average fees are 320 00:14:59,480 --> 00:15:03,240 Speaker 3: in Australia the moment they have come from one point 321 00:15:03,320 --> 00:15:06,920 Speaker 3: three one, but they have You know that that that 322 00:15:07,040 --> 00:15:11,200 Speaker 3: environment is dominated by not for profit industry run schemes 323 00:15:11,200 --> 00:15:14,280 Speaker 3: that give back to their members and their fees are 324 00:15:14,320 --> 00:15:17,960 Speaker 3: around one percent. So I think they should always be 325 00:15:17,960 --> 00:15:22,360 Speaker 3: focused on on fees. Of course, ultimately, performance after fees 326 00:15:22,440 --> 00:15:26,000 Speaker 3: is what matters. What I'm I think liking is there's 327 00:15:26,000 --> 00:15:28,480 Speaker 3: a few more options across newsumer market now for people 328 00:15:29,320 --> 00:15:31,600 Speaker 3: to pay high fees if they believe that their investment 329 00:15:31,640 --> 00:15:36,400 Speaker 3: manager is capable of outperforming the market, or to pay 330 00:15:36,520 --> 00:15:39,440 Speaker 3: very low fees if they believe that just tracking the 331 00:15:39,480 --> 00:15:43,200 Speaker 3: market is the best thing, and also maybe having a 332 00:15:43,200 --> 00:15:47,760 Speaker 3: foot near the camp and seeing how they go and 333 00:15:47,800 --> 00:15:49,760 Speaker 3: so I think those sorts of I think there's more options, 334 00:15:49,800 --> 00:15:51,400 Speaker 3: and I think that's the right place to play, rather 335 00:15:51,440 --> 00:15:54,600 Speaker 3: than ultimately everyone race to the bottom. 336 00:15:55,000 --> 00:15:57,280 Speaker 1: In the year that we're currently in, they've halved that 337 00:15:57,360 --> 00:16:00,000 Speaker 1: sort of government contribute rate down to twenty five cents 338 00:16:00,080 --> 00:16:02,280 Speaker 1: to the dollar for the first sort of grand that 339 00:16:02,280 --> 00:16:05,360 Speaker 1: you're putting into it. Right, so people thirty July are 340 00:16:05,400 --> 00:16:06,720 Speaker 1: going to be racing to try and make sure that 341 00:16:06,720 --> 00:16:09,440 Speaker 1: they qualify for sort of two hundred and fifty bucks roughly, 342 00:16:10,200 --> 00:16:12,320 Speaker 1: and forget about that if you're eaning over one hundred 343 00:16:12,320 --> 00:16:15,000 Speaker 1: and eighty grand. Sixteen to seventeen year olds now qualify 344 00:16:15,080 --> 00:16:17,280 Speaker 1: for that contribution rate, don't they. And they're lifting the 345 00:16:17,320 --> 00:16:19,720 Speaker 1: contribution rate so three percent of the minimum at the 346 00:16:19,720 --> 00:16:21,920 Speaker 1: moment that you and your employer put in, and they're 347 00:16:21,960 --> 00:16:24,160 Speaker 1: nudging it up three and a half and then for 348 00:16:24,440 --> 00:16:27,080 Speaker 1: the following year. Good moves. 349 00:16:27,400 --> 00:16:30,640 Speaker 4: Oh great move, yeah, and a necessary move. I mean 350 00:16:30,760 --> 00:16:33,840 Speaker 4: it's mentioned earlier. We're not as prepared for our retirement, 351 00:16:33,920 --> 00:16:37,080 Speaker 4: or many of us aren't as we could be. You know, 352 00:16:37,120 --> 00:16:40,120 Speaker 4: it was a great start. We're one hundred and twenty 353 00:16:40,240 --> 00:16:44,400 Speaker 4: billion or so in terms of our scheme. But yeah, 354 00:16:44,440 --> 00:16:46,320 Speaker 4: I think more needs to be done. Obviously, the government's 355 00:16:46,320 --> 00:16:51,640 Speaker 4: shifting the onus away from them tously to employees and 356 00:16:51,680 --> 00:16:54,360 Speaker 4: that so and yeah, it's great that sixteen seven year 357 00:16:54,360 --> 00:16:56,160 Speaker 4: olds will be included, getting them sort of on the 358 00:16:56,240 --> 00:17:01,080 Speaker 4: ladder early, and also increasing the contribution rates. I think 359 00:17:01,080 --> 00:17:04,520 Speaker 4: it's four percent by twenty twenty eight. I think it 360 00:17:04,600 --> 00:17:07,840 Speaker 4: might be. Yeah, so that's that's that's really good news. 361 00:17:08,480 --> 00:17:10,600 Speaker 4: Could we do more, Yes, we probably could do more. 362 00:17:10,720 --> 00:17:13,080 Speaker 4: I think it's certainly going to be a topic in 363 00:17:13,119 --> 00:17:15,439 Speaker 4: the election. Yeah, and for people, you know, looking at 364 00:17:15,480 --> 00:17:19,040 Speaker 4: their paypack, it's are going to be slightlylner, but you know, 365 00:17:19,160 --> 00:17:21,119 Speaker 4: not by March, right, So I think if you're in 366 00:17:21,280 --> 00:17:23,200 Speaker 4: seventy thousand, it might be seven dollars a week. I 367 00:17:23,240 --> 00:17:25,320 Speaker 4: think I paid more for that, more for a Larte 368 00:17:25,320 --> 00:17:28,199 Speaker 4: than that a couple of days ago than that. 369 00:17:28,359 --> 00:17:30,640 Speaker 1: So black coffee for the winners. That's my advice there, 370 00:17:30,680 --> 00:17:31,280 Speaker 1: that's right, But. 371 00:17:31,359 --> 00:17:33,960 Speaker 4: Look over time power of compounding that that could make 372 00:17:34,000 --> 00:17:36,639 Speaker 4: a huge difference of retirement. It could be tens of 373 00:17:36,640 --> 00:17:39,000 Speaker 4: thousands of dollars, if not more, and just make people 374 00:17:39,320 --> 00:17:41,639 Speaker 4: a lot more prepared. But I think, yeah, possibly more 375 00:17:41,680 --> 00:17:44,440 Speaker 4: to do in terms of lifting those contribution rates even 376 00:17:44,520 --> 00:17:46,120 Speaker 4: higher over the longer term. 377 00:17:46,520 --> 00:17:48,920 Speaker 1: Fair point, I mean, because I guess this is something 378 00:17:48,920 --> 00:17:53,639 Speaker 1: I picked up that the PM's Business Advisory Council. Basically 379 00:17:53,720 --> 00:17:57,040 Speaker 1: they were saying in two thousand three percent rate creates 380 00:17:57,080 --> 00:18:00,359 Speaker 1: this false impression that'll do it and it's not even 381 00:18:00,800 --> 00:18:02,000 Speaker 1: near enough, is it really? 382 00:18:02,280 --> 00:18:04,359 Speaker 3: Yeah, I was going to make that point, like the 383 00:18:04,720 --> 00:18:07,159 Speaker 3: first order impact is, you know, we need to save more, 384 00:18:07,200 --> 00:18:10,480 Speaker 3: but the second one was this false sense of security 385 00:18:11,000 --> 00:18:13,320 Speaker 3: that came with the government saying that the minimum of 386 00:18:13,440 --> 00:18:16,600 Speaker 3: three percent, you know, is the people said, oh, that's 387 00:18:16,600 --> 00:18:18,440 Speaker 3: the gold standard, that's what we should follow, and we'll 388 00:18:18,480 --> 00:18:20,640 Speaker 3: be okay. And then you'd hate to sort of fast 389 00:18:20,680 --> 00:18:22,560 Speaker 3: forward by forty years and be like, oh, I feel 390 00:18:22,600 --> 00:18:24,640 Speaker 3: like I, you know, should have been told. 391 00:18:24,480 --> 00:18:28,600 Speaker 1: More so lifting it. And I guess that panel was saying, hey, 392 00:18:28,640 --> 00:18:31,080 Speaker 1: you want to look at a plan. It's pretty much 393 00:18:31,200 --> 00:18:32,720 Speaker 1: we were at at the moment three and a half 394 00:18:32,720 --> 00:18:35,320 Speaker 1: about now I think four, but they were pushing it 395 00:18:35,359 --> 00:18:38,520 Speaker 1: all the way to five and it was five from employer, 396 00:18:38,600 --> 00:18:42,320 Speaker 1: five from employee, and a little bit more aggressively on 397 00:18:42,359 --> 00:18:44,280 Speaker 1: the employer to start with as well, is that what 398 00:18:44,280 --> 00:18:44,880 Speaker 1: we need to be. 399 00:18:44,880 --> 00:18:49,000 Speaker 4: Doing yes, yes, I think we should be tracking that way, 400 00:18:49,000 --> 00:18:51,760 Speaker 4: and of course you can. You're talking about the compulsory 401 00:18:52,160 --> 00:18:54,920 Speaker 4: levels as well. You can of course contribute six, eight 402 00:18:55,080 --> 00:18:58,240 Speaker 4: or ten, should could it be more? Should it be more? 403 00:18:58,560 --> 00:19:00,200 Speaker 4: Quite possibly? And you look and we're probably going to 404 00:19:00,240 --> 00:19:02,000 Speaker 4: get to it anyway. But if you look at Australias, 405 00:19:02,040 --> 00:19:05,359 Speaker 4: you know, four point five trillion, they've got a bit 406 00:19:05,359 --> 00:19:07,359 Speaker 4: of a head start in nineteen ninety two, but yeah, 407 00:19:07,600 --> 00:19:11,159 Speaker 4: for largest retirement pool in the world. But it's been 408 00:19:11,160 --> 00:19:14,000 Speaker 4: an incredible part of their success story, but also really 409 00:19:14,040 --> 00:19:18,480 Speaker 4: preparing people for retirement. It's different the way it's laid out, 410 00:19:18,520 --> 00:19:21,040 Speaker 4: but it's twelve percent, so you know, that's night and 411 00:19:21,119 --> 00:19:22,760 Speaker 4: day versus what we have here. 412 00:19:22,640 --> 00:19:27,000 Speaker 3: There's a risk, as in we're slightly concerned about that 413 00:19:27,480 --> 00:19:32,560 Speaker 3: as contributions go up, you're actually entrench some inequality because 414 00:19:34,480 --> 00:19:36,919 Speaker 3: the high they go, the more chance there is that 415 00:19:37,000 --> 00:19:39,720 Speaker 3: people will actually opt out. Thirty percent of working age 416 00:19:39,720 --> 00:19:44,480 Speaker 3: people today are not contributing, and I think that a 417 00:19:44,520 --> 00:19:47,479 Speaker 3: lot of that will be due to affordability of the 418 00:19:47,520 --> 00:19:50,480 Speaker 3: contributions is either food on the table this week or. 419 00:19:50,440 --> 00:19:53,520 Speaker 1: Saving for retirement and so in twenty years time. 420 00:19:53,680 --> 00:19:58,639 Speaker 3: Yeah, but some people the acute issue is today and 421 00:19:58,720 --> 00:20:02,880 Speaker 3: as they go up. Given the scheme is based on incentives, 422 00:20:03,040 --> 00:20:08,320 Speaker 3: so I'm incentivized by my employer's contribution, by my government contribution. 423 00:20:09,920 --> 00:20:13,359 Speaker 3: But if I need the if I simply can't afford 424 00:20:13,400 --> 00:20:15,560 Speaker 3: to contribute, I'm going to miss out on those incentives. 425 00:20:15,920 --> 00:20:20,640 Speaker 3: And I think if we think that just increasing contributions 426 00:20:20,800 --> 00:20:23,280 Speaker 3: is solely going to solve the problem, I think what 427 00:20:23,320 --> 00:20:25,440 Speaker 3: you're going to see is the people who are largely 428 00:20:25,560 --> 00:20:28,400 Speaker 3: going to be okay already are going to get wealthier 429 00:20:28,680 --> 00:20:32,639 Speaker 3: in retirement, and the people who are largely not okay. 430 00:20:32,480 --> 00:20:35,399 Speaker 5: Are actually going to be in a worse position. So 431 00:20:35,600 --> 00:20:36,520 Speaker 5: there is that risk. 432 00:20:36,880 --> 00:20:38,640 Speaker 3: Like I'm not saying it's going to play out that way, 433 00:20:38,680 --> 00:20:42,119 Speaker 3: but I think we should be concerned about creating a 434 00:20:42,119 --> 00:20:46,399 Speaker 3: long tail of wealth. And can we say by leaving 435 00:20:46,440 --> 00:20:49,720 Speaker 3: behind that thirty percent of people who aren't contributing. 436 00:20:49,320 --> 00:20:51,840 Speaker 4: And yeah, certainly, Yeah, great points. It needs to be 437 00:20:51,840 --> 00:20:54,960 Speaker 4: a plan also from ob see the employer's perspective as well, 438 00:20:54,960 --> 00:20:57,200 Speaker 4: And we're not saying it's going to go from three 439 00:20:57,280 --> 00:20:59,280 Speaker 4: and a half to twelve and two years or anything 440 00:20:59,359 --> 00:21:03,359 Speaker 4: like that, but yeah, planned for sure. And then from employer, 441 00:21:03,680 --> 00:21:06,080 Speaker 4: I mean, obviously, for if you're a small business and 442 00:21:06,119 --> 00:21:09,480 Speaker 4: you've suddenly got a rich up your the rates that 443 00:21:09,520 --> 00:21:11,359 Speaker 4: you're sort of paying, and that's tough as well, So 444 00:21:11,359 --> 00:21:12,760 Speaker 4: there needs to be something on the other side that 445 00:21:12,800 --> 00:21:16,760 Speaker 4: all needs to be worked out by politicians and the likes. 446 00:21:16,800 --> 00:21:18,879 Speaker 1: But are we up for it? Are we really up 447 00:21:18,880 --> 00:21:20,879 Speaker 1: for it though? Are we really ready to be saying 448 00:21:21,000 --> 00:21:23,119 Speaker 1: to businesses and to people, you might have to sacrifice 449 00:21:23,119 --> 00:21:25,159 Speaker 1: some of your salary. You might have to you know, 450 00:21:25,400 --> 00:21:27,879 Speaker 1: trim your costs even further and maybe not bump your 451 00:21:27,880 --> 00:21:30,480 Speaker 1: prices up quite too quickly, thank you, either to try 452 00:21:30,480 --> 00:21:31,200 Speaker 1: and make this work. 453 00:21:31,280 --> 00:21:32,960 Speaker 4: Oh, there have to be some sort of tax relief 454 00:21:32,960 --> 00:21:35,000 Speaker 4: for something along those lines. We would have thought, yes, 455 00:21:35,080 --> 00:21:39,240 Speaker 4: there has to be a you know, a carrot as 456 00:21:39,240 --> 00:21:39,600 Speaker 4: it were. 457 00:21:39,840 --> 00:21:42,000 Speaker 1: And the carrot with this as well that we got 458 00:21:42,080 --> 00:21:45,080 Speaker 1: rid of was that initial contribution, right, there was this carrot, 459 00:21:45,119 --> 00:21:46,919 Speaker 1: this thousand bucks that you got for signing up, and 460 00:21:46,960 --> 00:21:50,640 Speaker 1: that shouldn't we be looking at that perhaps in some 461 00:21:50,680 --> 00:21:53,399 Speaker 1: way for people that are at the start or maybe 462 00:21:53,520 --> 00:21:56,199 Speaker 1: coming in on a lower salary. Whatever does that? Is 463 00:21:56,200 --> 00:21:58,080 Speaker 1: that the kind of incentive that would trigger it. 464 00:21:58,119 --> 00:22:00,159 Speaker 3: I'd like to kind of go up a level and 465 00:22:00,320 --> 00:22:04,879 Speaker 3: think is incentives the right thing to do, or is 466 00:22:05,320 --> 00:22:08,280 Speaker 3: entitlements or compulsion the right thing to think about. 467 00:22:08,440 --> 00:22:10,560 Speaker 1: So make it that everybody has to be in, but 468 00:22:10,640 --> 00:22:11,639 Speaker 1: give them some choices. 469 00:22:11,680 --> 00:22:13,639 Speaker 5: As Look, there's been a few things banded around. 470 00:22:13,640 --> 00:22:16,240 Speaker 3: One idea was like a rising floor of compulsion that 471 00:22:16,840 --> 00:22:18,880 Speaker 3: as you enter your first job for the first time, 472 00:22:18,920 --> 00:22:21,720 Speaker 3: you get opted in like you do already, but you 473 00:22:21,760 --> 00:22:25,640 Speaker 3: didn't have the ability to opt out. And so, you know, 474 00:22:25,920 --> 00:22:28,720 Speaker 3: the argument's always been, well, you know, I'm fifty five 475 00:22:28,800 --> 00:22:31,040 Speaker 3: or sixty years old and I'm working, and you're making 476 00:22:31,040 --> 00:22:33,199 Speaker 3: it compulsory and that's not fair. And I agree with 477 00:22:33,200 --> 00:22:36,359 Speaker 3: that argument, But for people entering the workforce, like why 478 00:22:36,400 --> 00:22:41,000 Speaker 3: not and you know, you know, respecting the argument about 479 00:22:41,600 --> 00:22:46,800 Speaker 3: employer's cost going up, should that remain an incentive for 480 00:22:46,880 --> 00:22:51,120 Speaker 3: me to contribute or should that become compulsory for employers 481 00:22:51,240 --> 00:22:52,080 Speaker 3: to contribute? 482 00:22:52,119 --> 00:22:54,280 Speaker 1: Because you've got this total remuneration picture at the moment 483 00:22:54,320 --> 00:22:57,440 Speaker 1: where people are effectively paying the whole lot themselves, right. 484 00:22:57,440 --> 00:22:59,200 Speaker 3: Yeah, and I think that needs to go and those 485 00:22:59,200 --> 00:23:01,800 Speaker 3: people might be effected if contributions go up. 486 00:23:01,840 --> 00:23:04,159 Speaker 1: But big numbers of people though, yeah. 487 00:23:04,000 --> 00:23:06,840 Speaker 3: It's half of employers doing it not for everyone, obviously, 488 00:23:07,880 --> 00:23:08,720 Speaker 3: I think a lot of that. 489 00:23:08,760 --> 00:23:10,760 Speaker 1: So that's effectively just in case anyone miss that. That's 490 00:23:10,800 --> 00:23:14,040 Speaker 1: where an employer says, hey, look will basically gross up 491 00:23:14,200 --> 00:23:16,520 Speaker 1: our contribution into your salary. So we're giving you a 492 00:23:16,520 --> 00:23:18,359 Speaker 1: good salary, but you're going to cover the whole. 493 00:23:18,480 --> 00:23:21,480 Speaker 3: You have to put your own your own contributions side. 494 00:23:21,920 --> 00:23:24,520 Speaker 3: I think there's been you said are we up for it? 495 00:23:24,880 --> 00:23:27,720 Speaker 3: So you know, the first major policy announcement of the 496 00:23:28,160 --> 00:23:30,560 Speaker 3: or the first few major policy annountments of the of 497 00:23:30,640 --> 00:23:34,240 Speaker 3: the Allegian cycle all had keep you savor at their heart. 498 00:23:34,680 --> 00:23:37,240 Speaker 3: So I think people clearly are up for it because 499 00:23:37,240 --> 00:23:39,440 Speaker 3: they would have tested these with people before they came 500 00:23:39,480 --> 00:23:43,040 Speaker 3: out and did them, the focus groups. 501 00:23:42,760 --> 00:23:45,639 Speaker 1: And the people hundred hundreds of dry white wine and 502 00:23:45,760 --> 00:23:46,760 Speaker 1: kicking around the words here. 503 00:23:46,800 --> 00:23:47,000 Speaker 5: Yeah. 504 00:23:47,040 --> 00:23:48,919 Speaker 3: And there's been a lot of comparison to Australia, and 505 00:23:48,920 --> 00:23:51,439 Speaker 3: I think it's great to compare to Australia because they 506 00:23:51,440 --> 00:23:54,040 Speaker 3: are a great system. But you know, I read the 507 00:23:54,080 --> 00:23:57,960 Speaker 3: other day the New Zealand's retirement saving system is actually 508 00:23:58,640 --> 00:24:01,679 Speaker 3: more equal. Quality is higher in New Zealand than it 509 00:24:01,720 --> 00:24:04,080 Speaker 3: is in Australia. I think equality is another angle to 510 00:24:04,080 --> 00:24:06,720 Speaker 3: look at. I think what that means is we're all 511 00:24:06,760 --> 00:24:12,080 Speaker 3: equally is worse off compared to Australians. But in Australia 512 00:24:12,119 --> 00:24:17,080 Speaker 3: the system is quite different. Super is not universal, and 513 00:24:17,119 --> 00:24:20,480 Speaker 3: they create their wealth out of compulsion, out of capital 514 00:24:20,560 --> 00:24:23,840 Speaker 3: accumulation over many years, and we don't. We create most 515 00:24:23,880 --> 00:24:26,080 Speaker 3: of ours out of paying taxes and then having that payback. 516 00:24:26,080 --> 00:24:27,960 Speaker 1: In New Zealand super, So that could be the quick 517 00:24:28,000 --> 00:24:29,960 Speaker 1: pro quo we sort of say, hey, look we are 518 00:24:30,000 --> 00:24:34,280 Speaker 1: going to make a more generous plan. But maybe SUPER 519 00:24:34,359 --> 00:24:37,240 Speaker 1: isn't for anyone Karaky good luck getting that past Winston 520 00:24:37,240 --> 00:24:40,399 Speaker 1: Peter's ark now or any number of political players. But 521 00:24:40,840 --> 00:24:42,800 Speaker 1: is that the kind of grown up conversation New Zealand 522 00:24:42,800 --> 00:24:45,560 Speaker 1: needs to start having about how we actually look after 523 00:24:45,560 --> 00:24:48,600 Speaker 1: our future and the balance of where the retirement income 524 00:24:48,640 --> 00:24:49,240 Speaker 1: comes from. 525 00:24:49,800 --> 00:24:51,840 Speaker 4: Yeah, I think so. But also going back to these 526 00:24:52,119 --> 00:24:55,680 Speaker 4: education you mentioned, you know, younger people not contributing and 527 00:24:55,720 --> 00:24:58,400 Speaker 4: they're not worried about retirement. They're probably thinking about going 528 00:24:58,400 --> 00:24:59,159 Speaker 4: on their ie or. 529 00:24:59,119 --> 00:25:02,800 Speaker 1: Whatever you're but you know, it's hard to imagine the 530 00:25:02,880 --> 00:25:04,760 Speaker 1: value of that extra twenty or thirty or fifty or 531 00:25:04,760 --> 00:25:07,880 Speaker 1: one hundred thousand dollars when you're over seventy when you're 532 00:25:07,920 --> 00:25:10,159 Speaker 1: actually thinking about you know where or not I'm going 533 00:25:10,200 --> 00:25:11,480 Speaker 1: to go to the pub that week, next week and 534 00:25:11,520 --> 00:25:12,320 Speaker 1: the week after. 535 00:25:12,320 --> 00:25:15,160 Speaker 4: Yeah exactly, but yeah, not having that pint and they're 536 00:25:15,240 --> 00:25:18,080 Speaker 4: no or maybe still having it. But also putting aside 537 00:25:18,080 --> 00:25:20,439 Speaker 4: that yeah, there's seven dollars a week or whatever it 538 00:25:20,480 --> 00:25:23,760 Speaker 4: is for for the key saver is Yeah, it's going 539 00:25:23,840 --> 00:25:25,520 Speaker 4: to make a huge difference. I think it's a bit 540 00:25:25,560 --> 00:25:28,480 Speaker 4: about Look, there's no perfect solution, and yes there are 541 00:25:28,560 --> 00:25:31,520 Speaker 4: differences With Australia. I think over all the schemes work 542 00:25:31,560 --> 00:25:35,640 Speaker 4: pretty well. That actually they have voluntary contributions and effectively 543 00:25:35,640 --> 00:25:38,120 Speaker 4: have the gross up scenario that you're sort of talking about, 544 00:25:38,119 --> 00:25:39,760 Speaker 4: and I think it's actually worked pretty well. It's also 545 00:25:39,840 --> 00:25:42,640 Speaker 4: worked really well in other countries. You think of Sweden, 546 00:25:42,840 --> 00:25:45,720 Speaker 4: Switzerland that also have sort of compulsory schemes. So I 547 00:25:45,720 --> 00:25:47,280 Speaker 4: think we need to have that conversation. I think we 548 00:25:47,320 --> 00:25:50,119 Speaker 4: will have that conversation the closer it comes to election, 549 00:25:50,960 --> 00:25:52,680 Speaker 4: in addition to all the other stuff like cost of 550 00:25:52,720 --> 00:25:56,440 Speaker 4: living and capital gains as well. But yeah, I think 551 00:25:56,560 --> 00:25:58,720 Speaker 4: it's really important and it is going to be a 552 00:25:58,800 --> 00:26:02,160 Speaker 4: stepping stone process. It's not going to happen in space 553 00:26:02,240 --> 00:26:04,320 Speaker 4: of one year or two years. But you know, what 554 00:26:04,480 --> 00:26:07,760 Speaker 4: is the destination We've had almost twenty years, what's what 555 00:26:07,800 --> 00:26:09,879 Speaker 4: does the next twenty look like? And how is that 556 00:26:09,920 --> 00:26:10,720 Speaker 4: going to have us placed? 557 00:26:11,040 --> 00:26:13,000 Speaker 1: I guess through that period we also saw a period 558 00:26:13,040 --> 00:26:15,000 Speaker 1: where you know, house prices were all over the place, 559 00:26:15,040 --> 00:26:17,439 Speaker 1: but there they seem to be flatter. The growth everyone 560 00:26:17,480 --> 00:26:20,840 Speaker 1: tells us is not there. The whole premise really was 561 00:26:20,880 --> 00:26:22,520 Speaker 1: that you would get a pension and you would have 562 00:26:22,520 --> 00:26:26,040 Speaker 1: a house that was paid off, and between that somehow 563 00:26:26,080 --> 00:26:28,840 Speaker 1: you'd be mostly fine. And now we're saying no, increasingly, 564 00:26:28,840 --> 00:26:30,639 Speaker 1: you need to save for your retirement key we service. 565 00:26:30,720 --> 00:26:34,199 Speaker 1: So are those how is that balance shifting? Obviously the 566 00:26:34,200 --> 00:26:37,080 Speaker 1: government pension, we've talked about the value of sort of 567 00:26:37,119 --> 00:26:39,440 Speaker 1: your own personal savings and property and so on. Is 568 00:26:39,480 --> 00:26:41,439 Speaker 1: that going to fall away as people focus more and 569 00:26:41,480 --> 00:26:43,040 Speaker 1: more on key we save all. 570 00:26:43,080 --> 00:26:44,680 Speaker 4: I think I think it's been a bit of a 571 00:26:44,720 --> 00:26:48,000 Speaker 4: wake up call. Obviously it's been that it's almost been 572 00:26:48,040 --> 00:26:51,520 Speaker 4: the default pension scheme. Hasn't it get on the housing ladder, 573 00:26:51,520 --> 00:26:54,359 Speaker 4: which is increasingly tough, you know, and a lot of 574 00:26:54,400 --> 00:26:57,720 Speaker 4: it's becoming almost to dream for something but you know, 575 00:26:57,760 --> 00:27:00,000 Speaker 4: we've seen a real sort of weird picture of us 576 00:27:00,040 --> 00:27:03,440 Speaker 4: sort of five years or so, where see, house price 577 00:27:03,520 --> 00:27:07,080 Speaker 4: is incredibly volatile, and then you know, they the house 578 00:27:07,280 --> 00:27:10,159 Speaker 4: housing market when bananas because everyone thought it was not 579 00:27:10,200 --> 00:27:11,359 Speaker 4: even but a lot of people thought it was a 580 00:27:11,400 --> 00:27:14,000 Speaker 4: great time to buy a house. Someone said it to 581 00:27:14,000 --> 00:27:16,159 Speaker 4: me at a barbecue. I said, I was that, oh, 582 00:27:16,200 --> 00:27:19,520 Speaker 4: because it just rates are so low, okay, alrighty, And 583 00:27:19,520 --> 00:27:21,360 Speaker 4: then obviously we had the wake up call after that, 584 00:27:21,480 --> 00:27:24,640 Speaker 4: you know, and we've had the housing market various commentator 585 00:27:24,640 --> 00:27:26,280 Speaker 4: said it was going to be good last year. It wasn't. 586 00:27:26,920 --> 00:27:30,800 Speaker 4: Some are a bit more conservative this year. But yeah, 587 00:27:30,800 --> 00:27:33,680 Speaker 4: our property market it's still expensive. It's really expensive. You 588 00:27:33,760 --> 00:27:36,200 Speaker 4: look at it compared to other countries in the OECD. 589 00:27:37,000 --> 00:27:40,359 Speaker 4: There's a reason that auction clearance rates are around forty 590 00:27:40,359 --> 00:27:43,320 Speaker 4: percent at the moment. You know, it's it's tough, it's 591 00:27:43,359 --> 00:27:47,400 Speaker 4: a it's a buyers market. But prices are still high. 592 00:27:47,520 --> 00:27:50,000 Speaker 4: So I think, yeah, the that you're talking about, we're 593 00:27:50,000 --> 00:27:52,639 Speaker 4: talking about parabolic moves before that sort of sure, bet 594 00:27:52,640 --> 00:27:56,240 Speaker 4: of the the property market going up, you know, ten 595 00:27:56,280 --> 00:28:00,320 Speaker 4: percent each year, that's it's gone completely. But I think 596 00:28:00,320 --> 00:28:02,600 Speaker 4: it's been a real sort of wake up call, and yeah, 597 00:28:02,600 --> 00:28:04,480 Speaker 4: people need to think that it's not necessarily going to 598 00:28:04,480 --> 00:28:07,760 Speaker 4: be about having their house house price double over the 599 00:28:07,840 --> 00:28:10,359 Speaker 4: next sort of ten years. It's going to leave them 600 00:28:10,400 --> 00:28:11,840 Speaker 4: comfortable in retirement. 601 00:28:11,880 --> 00:28:13,840 Speaker 1: Giving a bit more space to have a conversation about 602 00:28:13,920 --> 00:28:16,200 Speaker 1: ki We Saver exactly. Do we get it wrong calling 603 00:28:16,240 --> 00:28:18,479 Speaker 1: it key we Saver. It's not really saving, it's Invista. 604 00:28:18,640 --> 00:28:19,160 Speaker 5: We've got it wrong. 605 00:28:20,040 --> 00:28:22,200 Speaker 1: I guess ken We Investor sounds a bit weird because 606 00:28:22,280 --> 00:28:24,320 Speaker 1: key We Investor sounds like some guy in a suit 607 00:28:24,320 --> 00:28:25,800 Speaker 1: maybe or I don't know, but I'm just there. But 608 00:28:26,040 --> 00:28:28,280 Speaker 1: I get it. Kiwi Savor it's kind of got magic. 609 00:28:28,320 --> 00:28:29,880 Speaker 1: But it's misplaced, isn't it. 610 00:28:30,000 --> 00:28:31,800 Speaker 5: I think it is. I I think it is slightly. 611 00:28:33,359 --> 00:28:35,560 Speaker 3: I was working a long time ago at Qubank when 612 00:28:35,560 --> 00:28:37,760 Speaker 3: it came out, and people genuinely thought it was a 613 00:28:37,800 --> 00:28:41,040 Speaker 3: savings account at Qubank, so they would ring us and 614 00:28:41,080 --> 00:28:43,960 Speaker 3: ask us questions about their q we Savor that may 615 00:28:44,000 --> 00:28:45,920 Speaker 3: well have been sitting with Generate maybe not at the 616 00:28:45,960 --> 00:28:49,320 Speaker 3: time because they went there. But yeah, but look, hey, 617 00:28:49,360 --> 00:28:51,120 Speaker 3: it's a brand now, it's a very strong brand. It's 618 00:28:51,160 --> 00:28:55,040 Speaker 3: great brand, So there's no way you'd mess with that 619 00:28:55,160 --> 00:28:56,680 Speaker 3: brand at the stage we're. 620 00:28:56,520 --> 00:29:00,000 Speaker 1: Talking before about how key we saver funds their equivalent 621 00:29:00,200 --> 00:29:03,880 Speaker 1: in Australia. They're not for profits. It's pretty established here. 622 00:29:03,920 --> 00:29:06,560 Speaker 1: Things are moving around changing a lot. Are we like 623 00:29:06,600 --> 00:29:09,400 Speaker 1: an opportunity for offshore for people to come in here 624 00:29:09,440 --> 00:29:11,440 Speaker 1: all what like a owner piece of that fund, take 625 00:29:11,520 --> 00:29:12,880 Speaker 1: up a piece of that fund. The thing's going to 626 00:29:12,960 --> 00:29:13,520 Speaker 1: change up there. 627 00:29:13,640 --> 00:29:15,640 Speaker 3: What we have seen in Australia, the trend for the 628 00:29:15,720 --> 00:29:19,760 Speaker 3: last few years has been about consolidation and mainly. 629 00:29:19,360 --> 00:29:20,880 Speaker 5: Through mergers or acquisitions. 630 00:29:20,920 --> 00:29:25,920 Speaker 3: And so we've ended up with something like forty super 631 00:29:25,920 --> 00:29:31,240 Speaker 3: funds in Aussie consolidating or closing down over the last 632 00:29:31,320 --> 00:29:34,160 Speaker 3: five years, and I think only one or two market entrants. 633 00:29:34,600 --> 00:29:39,920 Speaker 3: So economies of scale large not for profits, the industry 634 00:29:39,920 --> 00:29:44,760 Speaker 3: funds do dominate. It's not a matter of just coming 635 00:29:44,800 --> 00:29:46,840 Speaker 3: into the New Zealand market and setting up a scheme. 636 00:29:47,520 --> 00:29:49,000 Speaker 3: Someone who's set up a scheme in the last three 637 00:29:49,040 --> 00:29:52,960 Speaker 3: or four years quite rightly. There are some very high 638 00:29:52,960 --> 00:29:56,280 Speaker 3: bars that need to be cleared. Also, we have our 639 00:29:56,640 --> 00:30:00,000 Speaker 3: unique pie tax structure and so a lot of technolog 640 00:30:00,320 --> 00:30:02,840 Speaker 3: doesn't just plug and play that nicely in New Zealand. 641 00:30:03,200 --> 00:30:07,040 Speaker 3: When it comes to the accounting that the scheme needs 642 00:30:07,080 --> 00:30:07,360 Speaker 3: to do. 643 00:30:07,960 --> 00:30:09,520 Speaker 1: See, you've got a wee bit of a motor around you, 644 00:30:09,560 --> 00:30:09,960 Speaker 1: both of you. 645 00:30:10,440 --> 00:30:12,240 Speaker 4: Yeah, I think there's plenty of guard rails. 646 00:30:12,320 --> 00:30:15,479 Speaker 1: So yeah, but yeah, I just sort of wonder how 647 00:30:15,480 --> 00:30:17,440 Speaker 1: that would change things and whether that you know, those 648 00:30:17,520 --> 00:30:20,280 Speaker 1: dynamics would shift, you know, fee structures. It's probably getting 649 00:30:20,280 --> 00:30:21,760 Speaker 1: a bit speculative for this kind of thing. Thing what 650 00:30:21,800 --> 00:30:22,840 Speaker 1: we are people were trying to help. 651 00:30:22,920 --> 00:30:25,720 Speaker 3: I think what we are seeing is we're seeing a 652 00:30:25,760 --> 00:30:29,200 Speaker 3: lot more of the investment management actually being or parts 653 00:30:29,200 --> 00:30:32,800 Speaker 3: of it from different funds being outsourced, the capability to 654 00:30:33,080 --> 00:30:36,239 Speaker 3: you know, some of those offshore companies who have you know, 655 00:30:36,280 --> 00:30:41,240 Speaker 3: technology or strategies that have been very successful, and so 656 00:30:42,280 --> 00:30:45,080 Speaker 3: not so much about the foreign companies coming in and 657 00:30:45,160 --> 00:30:47,760 Speaker 3: running schemes here, but more about them providing service to 658 00:30:47,800 --> 00:30:50,200 Speaker 3: the New Zealand schemes to get better outcomes from members. 659 00:30:50,440 --> 00:30:51,920 Speaker 1: So that's the way the key we save is kind 660 00:30:51,920 --> 00:30:53,840 Speaker 1: of responding. I'm just sort of wondering other ways that 661 00:30:53,880 --> 00:30:57,760 Speaker 1: it's responding to, you know, the growing pains of hitting eighteen. 662 00:30:58,040 --> 00:30:59,520 Speaker 1: What else do you think needs to happen? 663 00:31:00,720 --> 00:31:03,600 Speaker 4: Well, I think, yeah, there's the contribution rates need to 664 00:31:03,680 --> 00:31:07,560 Speaker 4: rise over time that the issue of compulsion needs to 665 00:31:07,560 --> 00:31:09,040 Speaker 4: be locked out. I've got I think we've got plenty 666 00:31:09,040 --> 00:31:11,600 Speaker 4: of choice in the in the key we saver market 667 00:31:11,640 --> 00:31:14,680 Speaker 4: in terms of providers, and I think there's enough tension 668 00:31:14,720 --> 00:31:19,280 Speaker 4: there to ensure that your firms sort of I won't 669 00:31:19,280 --> 00:31:20,280 Speaker 4: they kept honest, but you know. 670 00:31:21,240 --> 00:31:22,280 Speaker 1: Kept keen keept keen. 671 00:31:22,360 --> 00:31:23,520 Speaker 4: Yeah, that's so. 672 00:31:23,680 --> 00:31:23,840 Speaker 5: Yeah. 673 00:31:23,880 --> 00:31:26,680 Speaker 4: I think there's plenty of competition here. There's plenty of choice, 674 00:31:26,680 --> 00:31:29,440 Speaker 4: which is great, and that's going to compel with the 675 00:31:29,440 --> 00:31:31,720 Speaker 4: firms that are involved to do better and strive to 676 00:31:31,720 --> 00:31:35,000 Speaker 4: do better. But there's also you know, there's also a 677 00:31:35,040 --> 00:31:39,480 Speaker 4: bit of not again not collusion, but not camaraderie either. 678 00:31:39,520 --> 00:31:42,400 Speaker 4: But you know, provider firms are sort of working together 679 00:31:42,520 --> 00:31:45,160 Speaker 4: as well. You know, we're having having partnerships and looking 680 00:31:45,160 --> 00:31:46,960 Speaker 4: to sort of work together for the for the greater goods. 681 00:31:46,920 --> 00:31:49,560 Speaker 4: So I think that's really really encouraging as well. 682 00:31:49,720 --> 00:31:51,960 Speaker 1: So what are the key we savers themselves need to 683 00:31:52,000 --> 00:31:53,160 Speaker 1: do to plan better? 684 00:31:54,000 --> 00:31:58,640 Speaker 4: I think educate themselves as probably is probably the best 685 00:31:58,640 --> 00:32:02,520 Speaker 4: thing you can do. Get advice, it's probably the second thing, 686 00:32:02,800 --> 00:32:05,520 Speaker 4: and just become more aware of how important it is. 687 00:32:06,200 --> 00:32:08,920 Speaker 4: It's not just an annoying sort of three and a 688 00:32:08,960 --> 00:32:14,000 Speaker 4: half percent deduction each month or each week from your paypack, 689 00:32:14,040 --> 00:32:15,400 Speaker 4: and it's something that's going to set you up a 690 00:32:15,440 --> 00:32:19,400 Speaker 4: lot better in your sort of golden years, as it were, 691 00:32:19,440 --> 00:32:22,640 Speaker 4: and you live out the retirement that you deserve. 692 00:32:23,080 --> 00:32:25,920 Speaker 3: There's another group to which I think we can't forget about, 693 00:32:25,920 --> 00:32:29,480 Speaker 3: which is self employed. New Zealand's a country of small 694 00:32:29,480 --> 00:32:33,960 Speaker 3: businesses largely, and you know, with the harving again of 695 00:32:34,040 --> 00:32:36,840 Speaker 3: the government contribution, and it's like, well, now I've got 696 00:32:36,880 --> 00:32:39,000 Speaker 3: to do the admint of putting in one thousand dollars 697 00:32:39,040 --> 00:32:40,240 Speaker 3: a year in and. 698 00:32:40,120 --> 00:32:41,320 Speaker 5: For that I get two fifty. 699 00:32:41,360 --> 00:32:44,760 Speaker 3: I think we've if we're not below kind of the 700 00:32:45,920 --> 00:32:48,480 Speaker 3: level at which that's an incentive, then we're very close. 701 00:32:50,080 --> 00:32:52,160 Speaker 3: And I think if you look at again some other 702 00:32:52,360 --> 00:32:59,200 Speaker 3: more mature markets, there's this obvious opportunity to use like 703 00:32:59,680 --> 00:33:03,640 Speaker 3: tax reductibility for self employed people, so that you're encouraging 704 00:33:03,680 --> 00:33:07,600 Speaker 3: self employed people to contribute for their retirement savings and 705 00:33:07,640 --> 00:33:11,280 Speaker 3: in return they are receiving some deductibility from there as 706 00:33:11,280 --> 00:33:15,000 Speaker 3: a business expense their own super and you know, you 707 00:33:15,000 --> 00:33:16,400 Speaker 3: have to put caps on it, and there's a few 708 00:33:16,400 --> 00:33:17,880 Speaker 3: other rules and things that need to come with it. 709 00:33:17,920 --> 00:33:21,480 Speaker 5: But that's another group that I see. I think keep 710 00:33:21,600 --> 00:33:22,440 Speaker 5: Saver is very. 711 00:33:22,320 --> 00:33:26,360 Speaker 3: Successful as a middle income retirement saving strategy. And then 712 00:33:26,360 --> 00:33:28,080 Speaker 3: you go, okay, well, we're not going to worry about 713 00:33:28,120 --> 00:33:30,880 Speaker 3: the affluent people because they can they are always going 714 00:33:30,920 --> 00:33:31,479 Speaker 3: to be okay. 715 00:33:31,880 --> 00:33:32,920 Speaker 5: But we're worried. 716 00:33:33,000 --> 00:33:35,400 Speaker 3: We're concerned that it's not a broad based scheme that's 717 00:33:35,400 --> 00:33:39,959 Speaker 3: going to help people towards the bottom or people who 718 00:33:39,960 --> 00:33:41,720 Speaker 3: are self employed. I think those are the two groups 719 00:33:41,720 --> 00:33:44,280 Speaker 3: that it's not really serving very well. 720 00:33:45,680 --> 00:33:48,440 Speaker 1: That person from Chersys, Greg Smith and Generate, thank you. 721 00:33:48,480 --> 00:33:50,640 Speaker 1: We'll make sure that the finance ministers and their opposition 722 00:33:50,680 --> 00:33:52,880 Speaker 1: spokespeople see this so that they can take it on board. 723 00:33:52,920 --> 00:33:55,160 Speaker 1: Hopefully they might cut this from the broadcast. I don't 724 00:33:55,160 --> 00:33:57,320 Speaker 1: know how political we get with these things, but it's 725 00:33:57,400 --> 00:33:59,239 Speaker 1: really important to think about this stuff. So I really 726 00:33:59,280 --> 00:34:02,400 Speaker 1: appreciate your time. I'm here today and thank you for listening, 727 00:34:02,440 --> 00:34:05,360 Speaker 1: for watching. However, you've been taking this on board. Kormat. 728 00:34:05,560 --> 00:34:06,720 Speaker 1: That's shared lunch for this week. 729 00:34:15,000 --> 00:34:18,000 Speaker 2: Chezy's Investment Management Limited is the issue of the Chasis 730 00:34:18,080 --> 00:34:20,920 Speaker 2: keep Saver scheme. The product disclosure statement for the chezis 731 00:34:21,000 --> 00:34:23,200 Speaker 2: keepy Service Scheme has been lodged and may be viewed 732 00:34:23,200 --> 00:34:26,360 Speaker 2: on the Disclosure Register or on our documents page.