Michael Cullen just Nationalised my Superannuation Savings!
I have considerable disquiet over the decision by Michael Cullen to force employers to subsidise retirement savings through Kiwisaver. In effect, he has nationalised the Retirement Savings Industry by stealth.
Now that an employer is going to provide matching for my retirement savings up to 4% of my salary, you would be crazy not to switch your own retirement scheme into Kiwisaver - unless your employer already offers a subsidised scheme. Only the very stupid and those who think the Government cannot be trusted not to confiscate their money won't. (I must confess to being borderline on that one!)
But to get 4% of my salary subsidised I have to invest my savings into a scheme that Michael Cullen controls and approves of - so my range of choices is limited to the choices the Minister of Finance makes for me.
What's the bet not one of the large retirement savings companies will risk upsetting Michael Cullen by criticising the scheme?
Government's can't be trusted to maintain consistent policies over the long-term - every now and then a radical Minister will change everything similar to the way Muldoon abolished the compulsary scheme instituted by Roger Douglas in the 1970s, and then how Douglas abolished Muldoon's Polish Shipyard economy.
If Cullen was serious about getting us to save for our retirements he'd just cut personal taxes and advise us that we have two choices what to do with that money - reduce debt and save for retirement; or work til you drop and starve in retirement.
I guess Cullen doesn't trust me enough to make my own choices - which is why I don't vote Labour.
Now that an employer is going to provide matching for my retirement savings up to 4% of my salary, you would be crazy not to switch your own retirement scheme into Kiwisaver - unless your employer already offers a subsidised scheme. Only the very stupid and those who think the Government cannot be trusted not to confiscate their money won't. (I must confess to being borderline on that one!)
But to get 4% of my salary subsidised I have to invest my savings into a scheme that Michael Cullen controls and approves of - so my range of choices is limited to the choices the Minister of Finance makes for me.
What's the bet not one of the large retirement savings companies will risk upsetting Michael Cullen by criticising the scheme?
Government's can't be trusted to maintain consistent policies over the long-term - every now and then a radical Minister will change everything similar to the way Muldoon abolished the compulsary scheme instituted by Roger Douglas in the 1970s, and then how Douglas abolished Muldoon's Polish Shipyard economy.
If Cullen was serious about getting us to save for our retirements he'd just cut personal taxes and advise us that we have two choices what to do with that money - reduce debt and save for retirement; or work til you drop and starve in retirement.
I guess Cullen doesn't trust me enough to make my own choices - which is why I don't vote Labour.
posted by Michael at
9:33 PM
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