Latest / Early Edition with Ryan Bridge / Sam Stubbs: Simplicity Founder on the number of Kiwis struggling with finances and retirement savings

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Sam Stubbs: Simplicity Founder on the number of Kiwis struggling with finances and retirement savings · Early Edition with Ryan Bridge

• 0:00
  Speaker 1: Fresh calls for Kiwi Saver changes, possibly meaning that your
• 0:03
  Speaker 1: boss could be on the hook to stump up some
• 0:05
  Speaker 1: more cash for your retirement. The Financial Services Council has
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  Speaker 1: found one in five kiwis don't have enough retirement savings
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  Speaker 1: to get them through the next year. Seventy nine percent
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  Speaker 1: of us are currently using Kiwi Saver, which is good,
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  Speaker 1: but we are not saving enough to be comfortable once
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  Speaker 1: we are there. Sam Stubbs is the simplicity KEI we
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  Speaker 1: Save fun founder. Sam, Good morning, good morning, Good to
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  Speaker 1: have you on the show. Do you what changes do
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  Speaker 1: we need to make? Is it? Is it the contributions?
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  Speaker 2: Does it?
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  Speaker 1: Do we need more than seventy nine percent of kiwis
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  Speaker 1: and Kiwisaver?
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  Speaker 2: Oh? Yeah, Look, I think I think two two really
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  Speaker 2: big changes that needed. Ryan. First of all, is you know,
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  Speaker 2: we're really getting to the point now where it has
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  Speaker 2: to be compulsory. That's much more normal overseas, certainly the
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  Speaker 2: case in Australia, because you know, it's all very well
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  Speaker 2: that seventy nine percent of saving, but those twenty one
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  Speaker 2: percent will have you know, nothing or almost nothing when
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  Speaker 2: they retire, and that ultimately means the taxpayers pay for
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  Speaker 2: all of it as well, So we have to get
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  Speaker 2: to compulsion and I think we're kind of heading in
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  Speaker 2: that direction. The other one is the contributions have to
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  Speaker 2: go up, you know. To give you another contrast, In Australia,
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  Speaker 2: people save on average about twelve percent of their salary.
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  Speaker 2: In New Zealand it's half that, and in Australia it's
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  Speaker 2: the employer who pays all of the contributions. The employee
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  Speaker 2: doesn't pay anything. And we can get to that point,
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  Speaker 2: right I mean, I know it's taking money out of
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  Speaker 2: people's pockets if you're basically making them save rather than
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  Speaker 2: spend right now, because you can achieve that by just
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  Speaker 2: doing it in very slow increments. In Australia it actually
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  Speaker 2: took twelve years for them to get to twelve percent.
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  Speaker 2: It might take a step long as well, so.
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  Speaker 3: You're percent a year because we're at what the compulsory
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  Speaker 3: employer at the moment is three percent, So you would
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  Speaker 3: look at a phased approach because I think they're at
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  Speaker 3: eleven and a half or twelve as you said in Australia,
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  Speaker 3: so it's going to take a while to get it
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  Speaker 3: up there, but you'll have employee as employers saying we
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  Speaker 3: can't afford that.
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  Speaker 2: Yeah, and look, you know someone's going to have to pay. Ultimately,
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  Speaker 2: we New Zealanders pay, whether it's the employee or the employer.
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  Speaker 2: We will have to start saving more. I'd even do
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  Speaker 2: less than that, Ryan, I as you do half a
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  Speaker 2: percent a year, just make it really slow and gradual.
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  Speaker 2: The most important thing is not that deep the amount
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  Speaker 2: short term. It's the amount long term you're saving. If
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  Speaker 2: it takes us a longer period of times to get there,
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  Speaker 2: that's fine, we can do that. But let's let's get
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  Speaker 2: that train leaving the station. So were as a nation
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  Speaker 2: safe more because we know Ryan, personally, if we saved more,
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  Speaker 2: we have more options you know in life later on
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  Speaker 2: well as a nation, if we save more, we'll have
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  Speaker 2: more options to Yeah.
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  Speaker 3: Sam, thank you very much for that. Great to have
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  Speaker 3: you on the show that Sam Stubbs simplicity Key we
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  Speaker 3: save a fund manager talking about the latest report from
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  Speaker 3: the Financial Services Council. Lots of us one and five
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  Speaker 3: of us don't have enough retirement savings to get through
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  Speaker 3: the next year based and that's based on your current spending,
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  Speaker 3: So your current lifestyle, you wouldn't be able to sustain
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  Speaker 3: nine nine two is the number to text. How do
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  Speaker 3: we all about compulsory Keipi saver. I don't like compulsory anything,
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  Speaker 3: but you do look at the Australians and you think, well,
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  Speaker 3: they've got it pretty good and they've been doing it
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  Speaker 3: for so long, and they've got all that capital which
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  Speaker 3: they're able to invest, and we're at what three percent?
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  Speaker 3: And I know because that's the thought, if you're a boss,
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  Speaker 3: if you're an employer, of adding to that one percent
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  Speaker 3: a year, one percent a year or whatever it might be.
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  Speaker 3: I mean, you'll be pulling your here out at the moment,
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  Speaker 3: wouldn't you.
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• 3:30
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• 3:32
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