Good to hear NZ workers compulsary super is going up, a much needed initiative to help people plan for their retirement, it is much hire here, but a rise of that would be too much
Half a million workers in KiwiSaver will face a cut to their take-home pay on April 1 when the minimum contribution rises from 2 per cent to 3 per cent for employers and employees. The move is expected to lead to about 25,000 savers opting for a “contributions holiday” from the scheme, to preserve their income, even though staying in the scheme would boost their overall wealth through savings. The latest data available showed 513,134 members of KiwiSaver schemes were on the minimum 2 per cent contribution rate through deductions from their salary or wages. The increase to the minimum was announced as part of a suite of measures, including cuts to tax credits, in the 2011 Budget. Officials assumed about 5 per cent would take contributions holidays as a result. Treasury estimated the combined effect of the changes, that would see the Government returning to surplus faster and a small increase in savings, would boost national savings by about 0.2 per cent. That would have a small impact on economic demand. Treasury considered the number of savers who would put their contributions on ice would be moderate, since cuts to the government subsidy and tax breaks would be offset by the increased rate paid by employers.
So while the link to this article said 1/2 million kiwis are taking a paycut the result reality is that 1/2 million kiwis will become better prepared for their future