KiwiSaver scheme, the poll

[Oakie]

IRD can recall the Government contribution any time they want.

Don't think so. I mean the government contribution will be invested by the scheme provider somewhere so the IRD will have no way of getting their hands on it. I think they did say something about being able to divert part of it to pay back an IRD debt but only with the taxpayers approval.

[bart]

You put in money.
Your boss puts in Money.
You get interest.

You get rich.

What's the problem?

[Oakie]

You put in money.
Your boss puts in Money.
You get interest.

You get rich.

What's the problem?

It's a scheme created by politicians and no-one trusts politicians not to change the rules a few years down the track. I think whatever goes into an individual's plan will be safe but the government could make changes later like change the age of entitlement to 70 for example. For what it's worth I'll take the punt because me putting in an amount then my boss matching it (eventually) gives me a 100% return without even considering growth from the investment. There are fees of course (which are partly paid for the government) but the dollar for dollar thing is pretty cool IMHO.

[Bloody Mad Woman (BMW)]

Going to a seminar about it on Monday - work is holding it, been reading a bit about it so will keep an open mind. Can't say I trust govts tho.

[Karma]

Depends who you work for... some employers are starting at only a 1% contribution... I'm fairly sure employers don't have to contribute at all, but I'd imagine some kind of business tax breaks are offered.

[NighthawkNZ:Me]

Can't say I trust govts tho.

yup doesn't matter who yah vote for a politician gets in...

[ZeroIndex]

The government just want another reason to get their greedy paws on my Doll Money...

[Toaster]

People still don't get this tax thing, do they? You don't get anything "back". The current tax take deals with the current outgoings. It isn't saved for you specifically for "later".

Agreed. And many see Govt as a source of income... when its a bloody great drain to most workers. It's like tax credits - bullshit system of taking $100 from you, spending $95 on IRD admin then sending you back $5 and people get excited!! I'd rather have a tax-cut thanks, instead of Govt spending my money merely to give themselves kudos with thick voters who don't realise they are getting ripped off in usual Labour fashion.

[Toaster]

Depends who you work for... some employers are starting at only a 1% contribution... I'm fairly sure employers don't have to contribute at all, but I'd imagine some kind of business tax breaks are offered.

It will be compulsory for all employers. Yes - the corporate tax rate will come down from 33% to 30% - which will align that rate with that of Australia.

[Grahameeboy]

Agreed. And many see Govt as a source of income... when its a bloody great drain to most workers. It's like tax credits - bullshit system of taking $100 from you, spending $95 on IRD admin then sending you back $5 and people get excited!! I'd rather have a tax-cut thanks, instead of Govt spending my money merely to give themselves kudos with thick voters who don't realise they are getting ripped off in usual Labour fashion.

I get half my tax back on 'Family Tax Credit'

[Grahameeboy]

The government just want another reason to get their greedy paws on my Doll Money...

Yeah think I will wait until I retire to keep an eye on progress before I think about joining.................

[Toaster]

You put in money.
Your boss puts in Money.
You get interest.

You get rich.

What's the problem?

That is all well and good if you remember you don't get anything until you retire - all the while for many, mortgage debt is being paid off slower becasue some of your income is now diverted to a saving scheme.

If the contributions are affordable, then maybe the scheme isn't too bad for some with low debt levels. However this means you pay off debt slower and accrue more interest cost against your debt. Keeping in mind floating rates are now over 10% - any gains you make in super schemes has to outstrip and offset the cost of your borrowings on the other side.

People forget that when they buy a house, the interest on debt over the life of the term will cost you double or more what you paid for the house to start with.

Some other things that seem forgotten is taxation on super savings - yes it is taxed - of course - because it is income. Same with the employer contribution. This also reduces the perceived benefits of a savings scheme.

My advice is if you have a large bank debt - pay it off as fast as you can to save on interest. The faster debt repays, then the sooner you can save for retirement.

[KATWYN]

. For what it's worth I'll take the punt because me putting in an amount then my boss matching it .

I want to know how the hell is that going to work?? The boss matching it??! Thats a wind up ...surely.

[KATWYN]

I'm fairly sure employers don't have to contribute at all, but I'd imagine some kind of business tax breaks are offered.

Only to be used to match the savings amounts? Tax break for the business owner....yea right

[NighthawkNZ:Me]

That is all well and good if you remember you don't get anything until you retire

Many of the companies in Oz that were doing the similar type of thing went under just before they had to pay out a large sum of people that was about to retire... now they have absolutely nothing... WFT