How to fix the retirement system

The Retirement Commissioner Jane Wrightson is recommending increasing government KiwiSaver contributions for low income earners while removing or phasing out government contributions for higher income earners.

Wrightson is also recommending increasing government parental leave contributions to $1,000 regardless of whether employees make KiwiSaver contributions while on leave, mandating ongoing employer contributions for those aged 65 and above and allowing those on temporary student or work visas to be part of the KiwiSaver scheme.

She also wants the government to reinstitute a cross-party accord on retirement incomes.

“The message is clear. We need a long-term political accord to focus on providing certainty for future generations of retirees and stop piecemeal policy change,” Wrightson says.