Key Takeaways:
- The National Party’s KiwiSaver proposal has received support from business owners and start-up founders, who believe it will improve individual and national outcomes.
- Some concerns have been raised about the potential for employers to shift the burden of their contribution back on to employees by switching to a total remuneration model.
- The proposal includes incorporating 16- and 17-year-olds into the scheme and making KiwiSaver compulsory at some time in the future.
- Business owners believe that the changes will encourage people to save and invest for their retirement, while also giving them the flexibility to find what works for them.
- The additional funds raised under the proposed changes could be used to support the start-up ecosystem and create more local jobs.
Introduction to the KiwiSaver Proposal
The National Party’s KiwiSaver proposal has been met with support from business owners and start-up founders, who believe it will improve individual and national outcomes. Rebecca "Bex" Twemlow, founding director of Firebrand, expressed her pleasure with the proposal, stating that business owners have a responsibility to take care of their people. She also supported the idea of incorporating 16- and 17-year-olds into the scheme, believing that they need to learn the value of saving at an early stage. Additionally, Twemlow supported the prospect of making KiwiSaver compulsory at some time in the future, highlighting the importance of saving for retirement.
Business Owners’ Perspectives
Roscoe Price Moor, founder of travel start-up Roady, also expressed support for the proposal, stating that any increase in employer contributions is "definitely felt". However, he suggested that the additional funds raised under the proposed changes could be used to support the start-up ecosystem and create more local jobs. Price Moor emphasized the importance of supporting the long-term financial wellbeing of his team, while also acknowledging the challenges of operating on lean margins and balancing cashflow with product development and expansion plans. Ben Davin and Mark White-Robinson, co-founders of KiwiSaver start-up Feijoa, also supported the changes, stating that the timeline should allow businesses to adjust to the increase as it’s phased in.
Potential Impact on Businesses
The proposal has also raised concerns about the potential for employers to shift the burden of their contribution back on to employees by switching to a total remuneration model. Twemlow acknowledged this concern, stating that it wouldn’t be good business practice, but emphasized that businesses have a responsibility to take care of their staff. Davin and White-Robinson also noted that small businesses don’t have a "magic pot of super-profits" they can rely on to fund greater contributions, and that they may need to adjust wages or hiring decisions to balance the situation. However, they believed that the changes would ultimately encourage people to save and invest for their retirement, while also giving them the flexibility to find what works for them.
Support for the Proposal
Despite some concerns, the proposal has received widespread support from business owners and start-up founders. Twemlow emphasized the importance of saving for retirement, stating that it’s essential for individuals to take care of their financial wellbeing. Price Moor highlighted the potential benefits of the proposal, including the creation of more local jobs and the support of the start-up ecosystem. Davin and White-Robinson noted that the changes would improve both individual and national outcomes, including greater capital depth for infrastructure and downward pressure on fees across the industry.
Conclusion
In conclusion, the National Party’s KiwiSaver proposal has received support from business owners and start-up founders, who believe it will improve individual and national outcomes. While some concerns have been raised about the potential for employers to shift the burden of their contribution back on to employees, the proposal has been widely supported as a step in the right direction. As Twemlow emphasized, business owners have a responsibility to take care of their people, and the proposal is an important step towards ensuring that individuals are prepared for retirement. With the potential to create more local jobs and support the start-up ecosystem, the proposal is a positive development for New Zealand’s economy.