Industry observers believe that an analysis of all savings problems, including compulsory superannuation, would help the masses get a better perception of the core problems relating to retirement savings and investment.
Prime Minister John Key was right in recognizing that any answer to their savings problem must be 'home skewed'. Key found that New Zealand suffered from foreign debt and local savings problem.
To tackle this issue, it is imperative to save more, and therefore, KiwiSaver has to be made compulsory. The present universal New Zealand Superannuation system will also be maintained.
This will help in increasing domestic capital levels and reduce borrowing. Finance Minister Bill English has predicted that by 2014, they will touch $250 billion.
Business Roundtable Executive Director, Roger Kerr said that people do not intend to save regularly for retirement because they have other things that take precedence, such as education or buying a house.
Mr. Kerr said, "Also, there is no good evidence that Kiwis are poor savers or not saving enough for retirement".
Ernst & Young partner, Jo Doolan is of the opinion that compulsory superannuation may be able to offload the future generations from tax. It would also be beneficial in the growth of the economy.
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