1 00:00:00,120 --> 00:00:01,960 Speaker 1: So is this the coming of age of our super 2 00:00:01,960 --> 00:00:04,720 Speaker 1: fund set up to ultimately at least partly fund our 3 00:00:04,760 --> 00:00:07,640 Speaker 1: superannuation requirements. It's been announced we'll be making our first 4 00:00:07,640 --> 00:00:10,959 Speaker 1: withdrawal in twenty twenty eight. That's five years earlier than thought. 5 00:00:11,320 --> 00:00:13,000 Speaker 1: Finance Minister Nikola willis, good. 6 00:00:12,880 --> 00:00:14,040 Speaker 2: Morning, very good morning. 7 00:00:14,200 --> 00:00:16,880 Speaker 1: Still three years out. Are you confident on these numbers 8 00:00:16,880 --> 00:00:19,040 Speaker 1: you'll be withdrawing and withdrawing well or not? 9 00:00:19,960 --> 00:00:23,200 Speaker 2: They are forecasts, They're based on a formula that's in law. 10 00:00:23,320 --> 00:00:25,960 Speaker 2: It's a very complicated formula to do with how much 11 00:00:26,040 --> 00:00:29,120 Speaker 2: is in the fund, what GDP is, how many tax 12 00:00:29,160 --> 00:00:31,000 Speaker 2: payers there are, all sorts of things. But that is 13 00:00:31,000 --> 00:00:33,599 Speaker 2: Treasury's forecast at this stage and it gives you an 14 00:00:33,600 --> 00:00:36,520 Speaker 2: indication of where we are, which is we've all talked 15 00:00:36,560 --> 00:00:38,519 Speaker 2: for several years about it. At a certain point, the 16 00:00:38,520 --> 00:00:41,120 Speaker 2: cost of superannuation will get very high and then we'll 17 00:00:41,159 --> 00:00:43,400 Speaker 2: need the super fund to help. We're now at that point. 18 00:00:43,560 --> 00:00:47,200 Speaker 1: Indeed, does it solve the problem long term? In other words, 19 00:00:47,200 --> 00:00:50,360 Speaker 1: it pays for a retirement or not well. 20 00:00:50,240 --> 00:00:53,680 Speaker 2: It helps offset the costs of New Zealand superannuation, So 21 00:00:54,480 --> 00:00:57,520 Speaker 2: that is a contribution towards paying super. 22 00:00:57,480 --> 00:01:01,560 Speaker 1: Yeah, but in what in its golden moments, what percentage 23 00:01:01,600 --> 00:01:02,320 Speaker 1: will it offset? 24 00:01:03,040 --> 00:01:05,400 Speaker 2: And it's golden moments, it's only going to be about 25 00:01:05,400 --> 00:01:07,480 Speaker 2: twenty percent of the total cost jees. 26 00:01:07,680 --> 00:01:11,280 Speaker 1: So we haven't extinguished the debate as to whether we 27 00:01:11,319 --> 00:01:13,200 Speaker 1: need to retire older yet. 28 00:01:13,319 --> 00:01:15,480 Speaker 2: Well, there's no getting away from the fact that superannuation 29 00:01:15,680 --> 00:01:18,800 Speaker 2: is very expensive. Just in the next few years, it's 30 00:01:18,840 --> 00:01:21,399 Speaker 2: going to leap up to twenty nine billion dollars a 31 00:01:21,520 --> 00:01:24,440 Speaker 2: year because there are a lot of people over the 32 00:01:24,480 --> 00:01:28,399 Speaker 2: age of sixty five and superannuation is pegged to the 33 00:01:28,440 --> 00:01:31,880 Speaker 2: after tax average wage, so that number keeps going up. 34 00:01:32,840 --> 00:01:35,840 Speaker 2: And that's the commitment that we have as a country 35 00:01:35,920 --> 00:01:38,840 Speaker 2: is to fund that entitlement, and we then need to 36 00:01:38,840 --> 00:01:40,720 Speaker 2: pay for it. And there are fewer tax payers of 37 00:01:40,760 --> 00:01:42,640 Speaker 2: course in the future to help pay for it. 38 00:01:42,720 --> 00:01:44,600 Speaker 1: Other side of the equations, Ken we Save, you're going 39 00:01:44,640 --> 00:01:48,680 Speaker 1: to do something in the budget. Yes, I am good 40 00:01:49,280 --> 00:01:50,040 Speaker 1: to the positive. 41 00:01:51,680 --> 00:01:54,200 Speaker 2: Yes, because I want to see people's key we saver 42 00:01:54,360 --> 00:01:58,320 Speaker 2: balances grow. I think key we Saver has become particularly 43 00:01:58,360 --> 00:02:00,840 Speaker 2: important for those saving to buy their first time. You 44 00:02:00,880 --> 00:02:03,360 Speaker 2: had more than forty thousand people use key we saving 45 00:02:03,400 --> 00:02:06,000 Speaker 2: to do that in the past year. And it's also 46 00:02:06,080 --> 00:02:11,280 Speaker 2: become an increasingly important supplement for people's retirement income. And 47 00:02:11,360 --> 00:02:15,000 Speaker 2: so we'll be announcing some changes, and I think they're positive. 48 00:02:14,680 --> 00:02:17,239 Speaker 1: Good changes from your side of the equation or out 49 00:02:17,240 --> 00:02:18,000 Speaker 1: side of the equation. 50 00:02:18,919 --> 00:02:21,640 Speaker 2: I'll be announcing some changes. And there's only eight slips 51 00:02:21,639 --> 00:02:24,200 Speaker 2: to go until everyone can read all about it in 52 00:02:24,240 --> 00:02:24,720 Speaker 2: the budget. 53 00:02:24,840 --> 00:02:26,560 Speaker 1: Have you read all of a Heart which is peace 54 00:02:26,600 --> 00:02:27,600 Speaker 1: in the herall this morning? 55 00:02:28,320 --> 00:02:29,320 Speaker 2: I have not read that yet. 56 00:02:29,440 --> 00:02:32,600 Speaker 1: Well worth reading too much government in this country, and 57 00:02:32,680 --> 00:02:35,720 Speaker 1: research says the bigger the government is, the more inefficient 58 00:02:35,800 --> 00:02:37,600 Speaker 1: we are, and we're hopelessly inefficient. 59 00:02:37,680 --> 00:02:41,000 Speaker 2: Fair or not well, we have a goal of getting 60 00:02:41,080 --> 00:02:43,840 Speaker 2: the proportion of government spending as part of the economy 61 00:02:43,840 --> 00:02:46,920 Speaker 2: down to thirty percent. We're making progress in this budget. 62 00:02:47,160 --> 00:02:49,800 Speaker 2: I'm getting that down. I agree with the idea that 63 00:02:49,800 --> 00:02:52,959 Speaker 2: you've got to give everyone room to do their own thing. 64 00:02:53,000 --> 00:02:54,919 Speaker 2: And if government is taking up more and more of 65 00:02:54,960 --> 00:02:57,520 Speaker 2: the resources, creating more and more red tape, getting more 66 00:02:57,560 --> 00:02:59,800 Speaker 2: and more in the way and out competing the private sector, 67 00:02:59,800 --> 00:03:03,240 Speaker 2: that's problem. Squeezes out innovation, squeezes out good ideas. 68 00:03:03,440 --> 00:03:05,240 Speaker 1: Exactly what we've got to keep it in proportion. You 69 00:03:05,240 --> 00:03:07,799 Speaker 1: your target is thirty his number this morning's thirty eight. 70 00:03:07,840 --> 00:03:09,200 Speaker 1: When are we down at thirty. 71 00:03:10,560 --> 00:03:13,280 Speaker 2: Well, we've set that as our medium term target. You'll 72 00:03:13,280 --> 00:03:15,600 Speaker 2: see at the budget that we're making pretty good progress 73 00:03:15,600 --> 00:03:17,960 Speaker 2: of the next few years and getting towards that number. 74 00:03:18,160 --> 00:03:20,519 Speaker 1: All right, appreciate your time. Finance Minister Nikola willis the 75 00:03:20,520 --> 00:03:22,359 Speaker 1: piece as well worth reading. As I alluded to her. 76 00:03:22,880 --> 00:03:26,079 Speaker 1: She says thirty it's currently thirty eight percent of the economy. 77 00:03:26,080 --> 00:03:28,320 Speaker 1: The size of the government of this economy is ridiculous, 78 00:03:28,680 --> 00:03:31,200 Speaker 1: he claims, Despite what Nicholas says. At thirty percent, he 79 00:03:31,240 --> 00:03:36,440 Speaker 1: claims international optimization is between twenty five and thirty. 80 00:03:37,040 --> 00:03:39,920 Speaker 2: For more from The Mike Asking Breakfast, listen live to 81 00:03:40,040 --> 00:03:43,120 Speaker 2: news talks that'd be from six am weekdays, or follow 82 00:03:43,160 --> 00:03:44,720 Speaker 2: the podcast on iHeartRadio.