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Speaker 1: So the NAT's are out with policy for next year's vote.

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Speaker 1: They're looking to bump super contributions to twelve percent a match.

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Speaker 1: Australia contributions would rise to six percent apiece between employer

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Speaker 1: and employee. The increase would come in at half a

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Speaker 1: percent a year from twenty twenty nine. Murray Harris is

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Speaker 1: the head of key We Saber at Milford Asset Management

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Speaker 1: and is with us. Murray, Good morning, morning Mike. If

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Speaker 1: you were running the world, would you do this?

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Speaker 2: Oh? Yeah, Look, fundamentally it's a very good move, well

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Speaker 2: for New Zealanders. I don't know about the rest of

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Speaker 2: the world, but it means that New Zealanders are going

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Speaker 2: to be better set up for retirement. I mean, qv

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Speaker 2: SAB has been. It's hugely successful. There's three point three

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Speaker 2: million kiwis in it and one hundred and twenty billion saved.

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Speaker 2: But for the eighteen years it's been operating, the issue

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Speaker 2: that we've had is contribution rates have been far too low.

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Speaker 2: So New Zealanders are not going to enjoy the retirements

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Speaker 2: that they dream of.

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Speaker 1: How do you guarantee if you can six percent from

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Speaker 1: your employer that isn't simply shaved off your pay.

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Speaker 2: Yeah, well this is where some of the policy settings

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Speaker 2: need to be worked through, and you know, fund out mentally,

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Speaker 2: this is a good announcement, but there's a lot of

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Speaker 2: other moving parts with kivsaver, and I think what we

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Speaker 2: need to see is what's the long term strategic plan

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Speaker 2: for kV saver and what are the settings that are

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Speaker 2: going to be set for the long term future because

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Speaker 2: at the moment you do have this thing called total

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Speaker 2: compensation where your employer can pay you out of your

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Speaker 2: pay their employer contribution. Now that should be scrapped. That's

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Speaker 2: another one of the settings that National haven't announced included

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Speaker 2: in this announcement, and as there are others as well,

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Speaker 2: that we need New Zealanders to be really confident that

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Speaker 2: kivsaver is going to be set for the future. There

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Speaker 2: isn't going to be tinkering with it every time we

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Speaker 2: get a change in political party, and that they can

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Speaker 2: be confident that their long term savings and retirement savings

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Speaker 2: for the future are going to be as they expect.

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Speaker 1: And if you can't take it out of pay or

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Speaker 1: guarantee it doesn't come out of a pay, what's the

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Speaker 1: impact on the economy as that goes to somewhere else

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Speaker 1: other than nol leaming or a power bill.

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Speaker 2: Yeah. Well, look, ultimately Kiwi's saving war is going to

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Speaker 2: be better. And you know even for employers, I mean

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Speaker 2: the employers we speak to, and I know there's been

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Speaker 2: research done with the Financial Services Council with employers. They

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Speaker 2: think the changes to the kevsaver settings that we saw

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Speaker 2: in the budget are positive. I think these would be

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Speaker 2: positive changes in the eyes of employers, which is and

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Speaker 2: they can plan for it, which is why we've got

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Speaker 2: a seven year runway because ultimately, employees want their staff

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Speaker 2: to do well. They want them to earn well, they

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Speaker 2: want them to retire well. And more money in kV

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Speaker 2: saving means more money to invest in the economy, so

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Speaker 2: the economy does better and things like infrastructure, which we

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Speaker 2: badly need, can be funded from retirement savings like they

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Speaker 2: are in Australia.

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Speaker 1: Good stuff, Well done, Murray Harris. God that was a

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Speaker 1: positive first positive reaction I've heard. All I've heard is am,

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Speaker 1: what happens there for your act? It's just like jeez anyway,

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Speaker 1: Murray Harris, head of keevsab at Milford Asset

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Speaker 2: For more from the mic Asking Breakfast listen live to

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Speaker 2: news talks there'd be from six am weekdays, or follow

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