Kiwis want a long-term plan for KiwiSaver

New Zealanders plan their retirement decades ahead. Increasingly, they want politicians to do the same.

A 25-year-old entering KiwiSaver today could still be contributing in the 2060s.

Between now and then, they could see 10 or more governments, countless Budgets and, if history is anything to go by, more than a few changes to the settings governing how New Zealanders save for retirement.

New polling suggests New Zealanders have had enough of that uncertainty.

An overwhelming 91% of Kiwis say it is important that our major political parties work together on a long-term retirement savings strategy that remains stable across future governments.

As FSC Chief Executive Kirk Hope puts it: “New Zealanders are sending a very clear message to stop playing politics with retirement savings. People are trying to plan 20, 30 or 40 years ahead, while too much policy is still being made three years at a time and policy changes are being made in isolation. We can do better.”

And the polling suggests New Zealanders aren't simply asking politicians to leave KiwiSaver alone but they're open to making it stronger.

More than half support gradually increasing KiwiSaver contribution rates over time. What's particularly striking is where that support comes from: a majority of National, Labour, ACT, NZ First, Green and Opportunity voters back higher contributions.

Retirement savings, it seems, may not be as politically divisive as politicians sometimes assume.

“The country is ready for a more ambitious KiwiSaver conversation. Voters across the spectrum understand that if we want stronger retirement outcomes, we need stronger savings settings. The question is whether politicians are up for it.”

That doesn't mean dramatically increasing contributions tomorrow.

“Nobody is saying whack contributions up overnight. But pretending the current settings will magically deliver the retirement incomes Kiwis expect is not serious policy.”

A bigger destination

This is why the FSC's Election Manifesto argues that New Zealand needs to decide where it wants its retirement savings system to be in 10, 20 and 30 years, rather than continually adjusting individual settings in isolation.

We've proposed a national retirement savings goal of $1 trillion by 2040, stronger KiwiSaver settings and a more coordinated approach to long-term financial wellbeing.

KiwiSaver has already transformed saving in New Zealand. The next question is what we want it to become.

“KiwiSaver has been one of New Zealand’s best public policy ideas, but we have never given it the long-term discipline it deserves. While we tweak, argue and shift settings, our retirement challenges keep getting bigger.

“FSC is saying it's time for one connected agenda, set a national goal and get cross-party commitment. Stop making retirement a political football and give New Zealanders confidence that the system will still be there when they retire.”

Saving is only half the story

There was another result in the polling that deserves attention.

84% of New Zealanders agree everyone should have affordable access to professional financial advice at key stages of life, including buying their first home, starting a family and preparing for retirement.

These are some of the biggest financial decisions most people will ever make. Yet professional advice can still feel out of reach for many of the people who could benefit from it most.

“Affordable advice should not be treated as a luxury product for people who already have wealth. Most New Zealanders make their biggest financial decisions without enough support. That is a policy failure hiding in plain sight.”

That's why the FSC's argument goes beyond simply lifting KiwiSaver contributions.

Building financial security means helping people save more, helping them make better decisions about those savings, and creating the conditions for that money to support New Zealand's future prosperity.

The interesting thing about this polling is that New Zealanders appear ready for that bigger conversation.

Now it's over to the politicians.