Governments need to stop tinkering with KiwiSaver, one banking commentator says.
Claire Matthews, of Massey University, said it was disappointing to see National proposing further changes to the scheme.
It announced last week it would increase the amount of money available as a deposit subsidy to first-home buyers purchasing a new home, and allow them to withdraw their member tax credits as well as their savings.
Matthews said: “KiwiSaver has been in place for seven years now. Politicians of all hues need to accept it is good for the country, and recognise that it is designed to help New Zealanders prepare for retirement and stop trying to use it to achieve other objectives. When it comes to KiwiSaver, the key message to all parties is they should stop messing with it.”
She said first-home buyers who withdrew money for a deposit were disadvantaged in terms of their retirement savings.
Politicians are going into the election with a range of different proposals for the retirement savings scheme.
Labour would make it universal and use contribution rates as a monetary policy tool . It would allow the Reserve Bank to increase KiwiSavers’ savings rates instead of increasing the official cash rate.
The ACT party wants contribution rates for both employers and savers to be set on a voluntary basis. Spokesman Robin Grieve said the system as it was encouraged oversaving among young people and undersaving in those closer to retirement.
United Future wants a form of flexi-super, where people could claim a smaller pension from the Government if they retired at 60, or a larger one if they worked until 70.
NZ First would allow money to be withdrawn for education and to buy a first home. Matthews said that could significantly disadvantage members at retirement, especially if they were funding the education of other family members.
Mana’s John Minto said all political parties should give some thought to what their policy would be in the event of a KiwiSaver fund’s failure.