Kiwislaver fatally flawed

KiwiSaver ‘too flawed to survive’ – 14 Jul 2007 – NZ Herald: New Zealand Business and Personal Finance News

As more becomes known about Kiwislaver more becomes known about its unsustainablility over the long term and despite Cullen’s assurances it is becoming more and more obvious that the country cannot sustain National Super, the Cullen Fund and Kiwislaver all at once.

[quote]”We know NZ super is going to double from 4 per cent to 8 per cent of gross domestic product,” he said. “If that were the only call on our future economy from the aged, putting healthcare aside, arguably that is a bearable increase in the cost of the aged. KiwiSaver will significantly increase the tax-funded costs of retirement.” He says the post-Budget version of KiwiSaver “probably does not have a long-term future. It is flawed in so many ways that it cannot survive.”

“Tomorrow’s government could say, reasonably, that we have already helped our saver to pay for that KiwiSaver annuity,” he says.

“The future government might therefore be entitled to recognise that help in the retirement income we pay through NZ super. That’s what happens now in Australia.”[/quote]

Once again the socialists have set a landmine for futher generations to step on, long after they are gone to where ever socialists go when they die. Labour did it in 1990 when they they left the BNZ landmine and now they are doing it all again. They rape and pillage the good times and then leave National to get their hands dirty cleaning up after their spendthrift ways.

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