Save for yourselves, Kiwis

Last updated 14:30 19/06/2014
Fairfax NZ
FUTUREPROOF: Relying on the pension may not be enough.

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Having recently returned from Australia after 10 years, we were able to come home with a tidy sum thanks to the Aussie compulsory super fund.

The mechanics of their system are a far cry from what the Labour Party here in New Zealand is proposing.

In Australia, the employer pays 9 per cent of your gross earnings into your nominated fund. You supply zip.

You can contribute out of your own salary from $10 a week to a maximum of $25,000 a year from your gross pay before tax. Whatever is left is taxed at that balance which could effectively be zero.

This is light years away from the proposed fund David Cunliffe is suggesting.

I feel everyone in New Zealand should pay on a pro rata basis, depending on your income. If you never see it, you don't miss it, and over time, compounding interest grows your fund to a substantial amount.

Remember, this is your money that will be available at 65, 67 or 70, or whatever age you want to retire.

Without this, a very high percentage of New Zealanders will be broke at retirement.

Traditionally, we do not save for retirement, but it's for your peace of mind and who wants to rely on the measly pension?

I suspect the Government will be still playing around with this in 30 years time, when I will most likely be dead.

So to all those whingers out there that live with their heads in the sand, do not have your hand out for a pension at retirement - it may not be there.

Do something for yourself now!

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