Fraser Whineray, former Mercury CEO, has proposed a plan to revamp the nearly two-decade-old mandatory savings program.
One key aspect of his plan is to establish a separate withdrawal age for KiwiSaver, independent of the NZ Super eligibility age, which is currently 65.
Whineray advocates for keeping the KiwiSaver access age at 65, regardless of any potential changes to the NZ Super age.
He emphasizes the importance of defining KiwiSaver’s access age and ensuring that it is not influenced by external factors.
Whineray plans to share a summary policy with all political parties to prompt them to confirm their commitment to ensuring KiwiSaver access at age 65.
In addition, he stresses that the government should not have the authority to dictate how KiwiSaver funds are invested.
Whineray also proposes increasing support for children’s KiwiSaver accounts by automatically opening accounts for newborns with an initial investment from the government.
He suggests redirecting funds currently allocated for incentives for individuals aged 18 to 64 towards children’s accounts to address disparities in KiwiSaver participation.
Furthermore, Whineray recommends continuing compulsory employer contributions, adjusting contribution rates gradually, and imposing restrictions on withdrawing funds for individuals who have been out of the country for an extended period.
These proposed changes aim to enhance the effectiveness and inclusivity of the KiwiSaver scheme while safeguarding individuals’ savings for retirement.
