In the first part of a two-phase release, the CFFC has recommended a series of immediate changes that Review Manager Scott McMurray believes could make a significant difference to New Zealanders’ balances and retirement outcomes. "They are aimed at making it easier for people to save more for the future and provide greater flexibility and certainty over their retirement savings” he says.

The 7 key recommendations are:

1. Increase employer and employee contributions from 3% to 4%:
2. Automated option to increase member contributions by 0.25%, 0.5 % or 1 % up to a capped maximum rate.
3. Add 6% and 10% to increase the range of employee contribution rates options.
4. KiwiSaver providers to disclose the total dollar cost of all fees on annual statements.
5. Decouple the age of access to KiwiSaver funds from NZ Superannuation
6. Change the name of ‘contributions holiday’ to ‘savings suspension’ and reduce the maximum time to one year.
7. Allow people over 65 years to join KiwiSaver.

CFFC says that an increased employer contribution will boost the incentive to become a member, and that raising the minimum contribution rates will result in a substantial increase to KiwiSaver account balances in the long term. For example, a 20 year old earning $40,000 would increase their KiwiSaver balance by $82,767 to $ 362,142 by contributing 4 per cent rather than 3 per cent.

On the topic of fees disclosure, CFFC says a dollar fee is easier for most people to understand and would improve transparency and trust. Policy work has already begun on regulations requiring schemes to provide members with actual fees paid in dollar terms which CFFC says will enable easier comparison between different schemes and promote competition.

Other non-urgent recommendations for KiwiSaver include;

* more research on understanding non-contributing members which number around 1.1 million of the 2.3 million eligible members

* Allowing membership of more than one KiwiSaver scheme

* Exploring decumulation options

CFFC believes that membership of more than one scheme would not reduce provider risk because funds are invested in underlying assets and not connected to the financial strength  of KiwiSaver providers. As for decumulation options, it says there has been a lack of annuity products to provide older people with a regular income and help manage their assets but as KiwiSaver balances grow and demand increases, it is expected that KiwiSaver providers will innovate and offer more drawdown options for members.

The 2016 Review of Retirement Income Policies is also calling for a national conversation' and attitude change toward older workers which includes retraining and career transition support for people over 50.

But whether the Government and it's new leader will be in any mood to take notice is another matter. Retirement Commissioner Diane Maxwell says she'll be seeking a "measured and considered" dialogue with the new PM and cabinet about the subject. "One would hope that a group of smart politicians who were acting as leaders would want to debate and discuss the ageing population - we know it's coming."