WEBVTT - Quick Bite: Does KiwiSaver need higher contribution rates?

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<v Speaker 1>You're listening to a shares These podcast. We've got the

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<v Speaker 1>budget coming up there. If you like rumors that the

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<v Speaker 1>government might cut its contribution, which is five hundred plus

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<v Speaker 1>dollars a year, Chris, do you think that's going to

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<v Speaker 1>have any effect at all?

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<v Speaker 2>I'm not sure it will on key we saber participation

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<v Speaker 2>because key we saver fulfills a few key functions.

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<v Speaker 3>You know.

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<v Speaker 2>One, it's really well regulated and people get accessed to

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<v Speaker 2>a wide range of investments right some some lower cost

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<v Speaker 2>and more passive, and some high cost and more active.

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<v Speaker 2>So I think it's working really well, and most people

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<v Speaker 2>I talk to are really positive about key we Saver. Second,

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<v Speaker 2>obviously you still get your employer contribution, which is as meaningful.

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<v Speaker 2>Might not be quite as high as Australia, but it's

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<v Speaker 2>still meaningful. I thing like it for people, So I

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<v Speaker 2>think overall it would be a shame. Don't get me

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<v Speaker 2>wrong to see changes, because I think what makes schemes

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<v Speaker 2>popular is actually when they're largely left alone by politicians

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<v Speaker 2>so people can invest with confidence.

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<v Speaker 3>Might take almost sorry, Christ, I must take the opposite. Yeah,

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<v Speaker 3>I think we're overdue for a policy review. Keep Saver

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<v Speaker 3>We're only a tiny little scheme, but I think we've

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<v Speaker 3>tried to be as vocal as we can. I'll come

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<v Speaker 3>back to agreeing with Chris now. With the government contribution

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<v Speaker 3>is that it's not targeted anyway, and what I'd like

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<v Speaker 3>to see actually is targeted and targeted at the people

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<v Speaker 3>that are being left behind. And I mentioned self employed before,

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<v Speaker 3>and you mentioned the kickstart and children. The fact that

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<v Speaker 3>the government contribution is not available to anyone under eighteen

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<v Speaker 3>seems contrary to good sense, which would be to get

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<v Speaker 3>people involved in Keepsaver as early as possible and incentivize that,

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<v Speaker 3>and incentivize people who are self employed because they are

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<v Speaker 3>not receiving the having if they receive an employer contributions

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<v Speaker 3>coming out of their own pocket twice and so you know,

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<v Speaker 3>there's I think let's have a look at the policy settings.

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<v Speaker 3>But I do take your point that the more that

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<v Speaker 3>you that you kind of mess around with it, So

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<v Speaker 3>any changes need to be really well signaled.

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<v Speaker 2>Oh look, and I'm more thinking about messing with it

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<v Speaker 2>in a negative way, and I want to mess with

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<v Speaker 2>it in a positive way. Around higher contributions.

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<v Speaker 1>We've actually looked at that ourselves.

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<v Speaker 3>Haven't we met what we heard when we got involved

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<v Speaker 3>in kipsab is industry saying that contributions need a rise,

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<v Speaker 3>and we heard the Retirement Commission say largely the same thing.

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<v Speaker 3>But the voice that was kind of missing from that

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<v Speaker 3>was the people who were going to have to make

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<v Speaker 3>the higher contributions, and that's you and me, that's the members.

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<v Speaker 3>So we went out and asked a bunch of our investors,

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<v Speaker 3>not out necessary keep we Saver members, but just people

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<v Speaker 3>on the Cheesies platform. It was overwhelming how many people said,

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<v Speaker 3>I get it, I'd prefer to have a little bit

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<v Speaker 3>less in my take home this week in order to

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<v Speaker 3>have more retirement. It was seventy eight percent who supported

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<v Speaker 3>that idea, which is phenomenal because it's counter to everything

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<v Speaker 3>that we assumed people would think. Like at the height

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<v Speaker 3>almost of the cost of living crisis, investing involves the

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<v Speaker 3>risk you might lose the money you start with.

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<v Speaker 2>We recommend talking to a licensed financial advisor.

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<v Speaker 1>We also recommend reading product disclosure documents before deciding to invest.