Labour leader Phil Goff is suggesting contributions to the compulsory Kiwisaver scheme will be government-guaranteed.
At the moment, contributions to Kiwisaver are entirely at the investor’s risk, and people could lose their entire life savings if a Kiwisaver investment scheme collapses.
However, under questioning from Newstalk ZB’s Mike Hosking at a breakfast in Auckland this morning, Goff says Labour’s policy of compulsory contribution to Kiwisaver is needed because “it guarantees that everybody gets a comfortable retirement”.
Pressed again, Goff repeated, “it is a guarantee for a comfortable retirement”.
The only way all New Zealanders could get a guaranteed retirement income from Kiwisaver is if taxpayers are forced to underwrite all the investment schemes.
The relevant questions are found between 46 minutes in and 49 minutes on the ZB interview link.