Latest / Best of Business / Murray Harris: Milford Asset Management's General Manager on National's Kiwisaver boost promise

Transcript

Murray Harris: Milford Asset Management's General Manager on National's Kiwisaver boost promise · Best of Business

• 0:09
  Speaker 1: You're listening to a podcast from newstalk ZEDB. Follow this
• 0:13
  Speaker 1: and our wide range of podcasts now on iHeartRadio.
• 0:16
  Speaker 2: So what do we make of the compulsory key We
• 0:18
  Speaker 2: say with the NATS will force you to save. They
• 0:20
  Speaker 2: will give every baby fifteen hundred dollars maternity contributions at
• 0:23
  Speaker 2: covered Murray Harris's general manager at Key Saber at Milford
• 0:25
  Speaker 2: Asset Management, and is with us Murray morning you Mike.
• 0:29
  Speaker 2: Out of ten, do we like it or not? Oh?
• 0:32
  Speaker 3: Yeah, it's a big improvement. It's getting close to ten. Look,
• 0:36
  Speaker 3: it's a positive. It's clearly signaled. It's a good improvement.
• 0:40
  Speaker 3: It's good for individuals who are going to have more
• 0:43
  Speaker 3: savings at retirement. It's good for the country's economic resilience
• 0:46
  Speaker 3: and financial security. And it's good for our capital markets
• 0:49
  Speaker 3: because it'll be more capital to invest in great New
• 0:51
  Speaker 3: Zealand companies, more iOS, more money for infrastructure investment. So look,
• 0:56
  Speaker 3: good for individuals, good for the economy, good for capital markets.
• 0:59
  Speaker 3: It's a win win win.
• 1:00
  Speaker 2: Ken employers a Ford six percent.
• 1:03
  Speaker 3: Well, you have to acknowledge there are challenges at the moment.
• 1:06
  Speaker 3: But the good thing about this being freely signed with
• 1:10
  Speaker 3: a runway ahead is that employers and employees can budget
• 1:14
  Speaker 3: for it and plan for it.
• 1:16
  Speaker 2: And does it come though at the expense of a
• 1:19
  Speaker 2: pay rise.
• 1:22
  Speaker 3: Well, look, I guess that's the nuances might be argued.
• 1:25
  Speaker 3: But it gets us to a much better savings regime.
• 1:29
  Speaker 3: So it forms habits. The compulsion element we've seen works
• 1:33
  Speaker 3: very very well and the most successful retirement savings schemes
• 1:38
  Speaker 3: and around the world Australia, Canada, Singapore. It gets people
• 1:43
  Speaker 3: into a habit and so planning for that, getting ready
• 1:48
  Speaker 3: for that. Whether employers might offset that, who knows, But
• 1:54
  Speaker 3: the good thing is that we can plan for it
• 1:55
  Speaker 3: and those employers can be ready for it. We know
• 1:58
  Speaker 3: it's going to give people better nest eggs at retirement.
• 2:01
  Speaker 2: The maternity thing, does that balance the gap?
• 2:04
  Speaker 3: Well, it helps. You know, female balancers are on average
• 2:07
  Speaker 3: twenty five percent lower than males and that's because it's
• 2:10
  Speaker 3: usually the female that goes and has the children and
• 2:13
  Speaker 3: raises those children, takes time out of the workforce and
• 2:16
  Speaker 3: doesn't contribute. So that will help to close that gap.
• 2:19
  Speaker 2: Now, how many years, if say they implement it as
• 2:22
  Speaker 2: of twenty seven, how many years does it take before
• 2:25
  Speaker 2: the country as a whole looks at the nest egg
• 2:27
  Speaker 2: and goes, boy, that was worth it. We've solved once
• 2:30
  Speaker 2: and for all the whole retirement savings debate.
• 2:33
  Speaker 3: Ah, look at it all take a long time still
• 2:35
  Speaker 3: because you know, we're well behind the rest of the world.
• 2:38
  Speaker 3: We're twenty years and tikiwisaver and we're still doing three
• 2:42
  Speaker 3: We've just gone to three and a half percent. It's
• 2:44
  Speaker 3: not enough. The most successful schemes around the world are
• 2:46
  Speaker 3: doing ten to fifteen percent of their income in terms
• 2:50
  Speaker 3: of the retirement savings. So it's still going to take
• 2:53
  Speaker 3: time to adjust, but it gets us on the path
• 2:56
  Speaker 3: in the right direction and gets us to where we
• 2:58
  Speaker 3: need to be. We've been thinking around for long, but
• 3:01
  Speaker 3: too lower contributions.
• 3:02
  Speaker 2: Here's why I don't like it. The moment a government
• 3:04
  Speaker 2: gets involved, they change the rules. And they have changed
• 3:07
  Speaker 2: the rules in this country in the very party who's
• 3:08
  Speaker 2: advocating this policy is the party and the government that
• 3:11
  Speaker 2: did change the rules. How do you stop the rules
• 3:14
  Speaker 2: getting changed.
• 3:15
  Speaker 3: Yeah, that's a very very good point because what we
• 3:17
  Speaker 3: do need is we need all political parties to agree
• 3:21
  Speaker 3: on a go forward plan for our retirement savings and
• 3:24
  Speaker 3: to stop the tinkreen and to stop changing the rules
• 3:27
  Speaker 3: every time there's a change of government. So we need
• 3:29
  Speaker 3: all parties to agree what does KIV saber look like.
• 3:32
  Speaker 3: We need to work alongside New Zealand super which we
• 3:35
  Speaker 3: know is becoming less and less affordable. So kiwisaver needs
• 3:38
  Speaker 3: to be set and forget policy clearly signaled and then
• 3:42
  Speaker 3: people can just get on with saving for the retirement
• 3:44
  Speaker 3: and enjoying the fruits of their hard labor.
• 3:46
  Speaker 2: Appreciate your expertise, Murray Murray har Us out of Milford
• 3:49
  Speaker 2: Asset Management.
• 3:50
  Speaker 1: For more from News Talks b listen live on air
• 3:54
  Speaker 1: or online, and keep our shows with you wherever you
• 3:56
  Speaker 1: go with our podcasts on iHeartRadio