Latest news with #FionaMackenzie
RNZ News
9 hours ago
- Business
- RNZ News
Which region has the highest KiwiSaver balance?
Where you live might make a difference to your KiwiSaver balance. Photo: RNZ / Hingyi Khong Data from the country's biggest KiwiSaver provider shows that when it comes to putting money aside in the scheme , where you live matters. A comparison of average balances around the country shows Wellingtonians lead the pack. There, ANZ members had an average balance of $44,863. That was followed by Taranaki, at $40,562. At the bottom of the table, more than $10,000 behind were Northland, at $33,830 and Gisborne, at $33,673. ANZ Funds Management managing director Fiona Mackenzie said KiwiSaver could hard code any income inequality. People who earned less over their lifetimes would end up with less in their KiwiSaver accounts as a result. Northland had an average household income last year of $123,900 according to government data, while Gisborne was $133,200. Wellington's average was $162,400. "Our hypothesis is that income variation is the biggest driver ," she said. "I genuinely have a concern that KiwiSaver is amplifying existing inequality ... whether it's gender pay gaps or ethnic pay gaps ... all of that gets amplified because KiwiSaver is anchored effectively to PAYE incomes. "I think it really is time we started having that larger conversation." She said, now the scheme had been around for 18 years, it was appropriate to ask whether it was on track. "The answer is not really. It's a great system, it's had awesome uptake ... but if you step right back, are people on track to be able to self-fund a comfortable retirement? No is the answer." She said, if left unaddressed, the disparities could compound over time and lead to uneven retirement outcomes across the country. South Islanders led the way when it came to making contributions. In Marlborough, Otago, Southland Canterbury, 70 percent of members were actively saving, compared to 60 percent in Auckland and Northland. Mackenzie said Southland and Canterbury had very high proportions of members receiving full or partial government contributions. The full contribution is available to people who contribute at least $1042 a year. The proportion in Gisborne and Northland was very low, she said. "Research typically shows those two areas have the highest level of deprivation so again I think we think there is a lot of linkage between income levels and it's part of the reason why as a KiwiSaver provider we spend a lot of time and energy trying to help people around that government contribution point because that is one of the remaining incentives." She said the government contribution could make a material difference to people with lower balances. Mackenzie said the regional disparity could also highlight differences in economic conditions, as well as financial awareness. "It reflects New Zealand's two-speed economy, where some regions are doing better and activity contributing to KiwiSaver, while others lag behind. "Understanding these variation is crucial, it allows policy-makers and providers to tailor strategies that boost participation in lower contributing areas, helping ensure all New Zealanders have the opportunity to build long-term financial security." Nationwide, 40 percent were not regularly contributing. About 27 percent of people aged 16 and 17 were, even though the data was collected before there were matching employer or government contributions available for them. Mackenzie said contribution rates had not been materially affected by the economic downturn. "I think that's incredibly positive ... the percentage of our customers who are contributing has stayed fairly stable and I think that's a really good thing." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Scoop
3 days ago
- Business
- Scoop
Turning The Tide: A Call To Strengthen Our Retirement Future
Data from the latest ANZ KiwiSaver Insights Report underscores the need for urgent, bipartisan action to strengthen New Zealand's retirement savings system. The report – Turning the Tide – shows younger generations are reshaping New Zealand's retirement future but there are challenges, such as regional disparity, the gender retirement savings gap and a lack of contributions by around 40 per cent of members. 'We're at a pivotal moment in shaping our retirement savings system,' says Fiona Mackenzie, Managing Director, ANZ Investments. 'With the right support Gen Alpha and Gen Z could lead New Zealand into a future where retirement is secure, equitable and sustainable. 'If we hope to achieve this, we need a shared commitment to addressing the long-term sustainability of NZ Superannuation and KiwiSaver through adjustments to both systems. 'This should include a serious look at gradually increasing both the KiwiSaver default contribution rate and the retirement age, more incentives or assistance for those who find it hardest to save and improved financial literacy initiatives for everyone. 'Recent announcements to strengthen KiwiSaver by increasing contribution rates and extending employer contributions to younger generations are a welcome development. 'At the same time, changes to government contributions may reduce some of the incentives for participation. Ensuring long-term equity across the system remains an important consideration as these reforms evolve.' Key findings from the report show: Gen Alpha and Gen Z are contributing to KiwiSaver at encouraging rates, despite limited incentives, signalling a shift toward stronger long-term savings. 27% of 16–17-year-olds contributed in June–July, even without government or employer matches. A 15-year-old starting work at 21 could save $1.16M by age 65, or $689,000 if they buy a home at 35. Generational Contribution Trends Gen Z: 53% contributed, despite high youth unemployment. Millennials: ~60% contributed. Gen X: 72% of women and 68% of men contributed. Baby Boomers: ~60% contributed; 33% of pre-1946 members still contribute. Regional Engagement South Island regions lead in KiwiSaver contributions: Marlborough, Otago, Southland, Canterbury: Over 70% engagement. Auckland, Northland: Just over 60% engagement. Gender Savings Gap Males contribute more than females across all age groups except Gen Alpha. The gap grows with age, reflecting broader income disparities: Average balance: Men $38,206, women $32,133. At age 64, the gap reaches $17,000. Fund Selection Patterns Younger members increasingly choose growth-oriented funds: Gen Alpha: 64% in Growth Fund. Gen Z: 41% in Growth Fund. Millennials: 35% in Growth Fund. Digital Tools Boost Confidence ANZ's Fund Chooser Tool: Delivers ~4,000 monthly recommendations. Guides nearly half of all fund switches. 'The data around the savings habits of younger generations is particularly encouraging,' Ms Mackenzie says. 'They get it, and our own research confirms this; they see KiwiSaver as their primary way of saving for a first home and for retirement. They aren't relying on NZ Super in the way older generations have. 'We like to compare ourselves to Australia, but if we aspire to a similar approach there is significant work to do building our national savings.' Ms Mackenzie says it's important that everyone – including employees and employers – are given certainty about KiwiSaver's future, so they have time to prepare. 'It is time for a proper conversation about the eligibility for superannuation, including the age of eligibility for NZ Super and whether means testing needs to be introduced at some future date. 'Well in advance of any changes to eligibility for superannuation, we need to be strengthening our savings, looking at how we get every young person signed up for KiwiSaver, and how we support those who are disadvantaged. Giving everyone time and certainty to plan for their life after 65 is critical.' ANZ Investments' Turning the Tide report aims to produce insights from customer data to help inform important conversations about KiwiSaver and help members understand the challenges and opportunities they face. This includes focussing into areas where people are disadvantaged and looking at innovative ways to help close the savings gap. Ms Mackenzie says better understanding where and why variations and disparities are occurring can help policymakers and providers tailor strategies to boost participation, particularly in lower-contributing areas. 'We all have a role to play here in how we work together to address these challenges over time in a way that earns public support. 'KiwiSaver is a powerful long-term investment in New Zealand's future prosperity. Establishing a clear and consistent long-term plan for KiwiSaver will help build confidence and ensure Aotearoa stays on a strong and sustainable path while helping New Zealanders plan for their futures with certainty.' ANZ Bank New Zealand Limited Get on top of your money ANZ has been helping New Zealanders get on top of their money ever since we opened for business in 1840. We were New Zealand's first bank and today we have a large network of full-service branches and ATMs, and talented people across the country. We're passionate about helping our customers make their money work harder and equipping them to make better financial decisions. Whether it's travelling the world, buying a home, building a business, investing for the future or protecting their family's future, we use our financial strength and expertise to help make it happen. Through our sponsorships, our Staff Foundation and thousands of staff volunteer hours each year, we support causes that make a difference to New Zealanders.
Daily Mail
18-06-2025
- Health
- Daily Mail
EXCLUSIVE Assisted dying law could result in hundreds of domestic abuse victims being coerced into taking their own lives, MPs warned
Hundreds of domestic violence victims could be coerced into using assisted dying to end their lives if it is legalised this week, a think tank warns today. The Other Half warned that victims of such abuse are already at a higher risk of taking their own lives and the situation could be exacerbated if the Terminally Ill Adults (End of Life) Bill becomes law on Friday. It has estimated that as many as 631 abuse victims, who are also terminally ill, could opt to die every year within a decade, based on the Government's own calculations about the uptake of the ability to seek help to die. A poll carried out by the women's rights think tank found that two thirds of voters, men and women, are concerned about victims being pressured into dying by their abusers. The Other Half chief executive Fiona Mackenzie said: 'This bill is designed to kill people – and that extraordinary purpose needs extraordinary safeguards. 'Government cannot avoid facing up to the reality before us, we have to understand how the bill could deliver the death of those we otherwise work hard to prevent. 'Domestic abusers already coerce victims into suicide, and into and away from cancer treatment options. Death is now on the menu of treatment options'. Concerns about the bill designed to allow the terminally ill to end their lives at a time of their choosing have grown in recent weeks and several MPs who backed it in a preliminary vote in November are now planning to oppose it. An impact assessment produced by the government, which is neutral on what is a 'conscience vote', noted in May that evidence suggests 'healthcare professionals lack ''training and education'' regarding domestic abuse and may be ''unwilling to engage in conversations about domestic abuse''.' 'We do not have evidence on how many victims of domestic abuse have a terminal illness and would or would not want to request assistance to end their own life,' it added. However it does also note that the panel which approves applications for assisted dying is expected to include a social worker who 'will have specific knowledge about safeguarding vulnerable adults'. If it goes ahead Friday will be the first time the Bill has been voted on in its entirety since November's historic yes vote, when MPs supported the principle of assisted dying for England and Wales by a majority of 55. Sources suggested there could now only be a 'handful of votes' in it. While supporters of the Bill say it is coming back to the Commons with better safeguards after more than 90 hours of parliamentary time spent on it to date, opponents claim the process has been rushed and that the Bill is now weaker than it was when first introduced last year. A key change was the replacing of a High Court judge requirement for sign-off of applications from terminally ill people, with a panel featuring a social worker, senior legal figure and psychiatrist. As it stands, the proposed legislation would allow terminally ill adults in England and Wales, with fewer than six months to live, to apply for an assisted death, subject to approval by two doctors and the three-member panel. While the Bill has the backing of some MPs from medical backgrounds, concerns have also been raised by the Royal Colleges of Physicians and Psychiatrists. Disability campaigners have voiced worries about coercion and how vulnerable people could be caught up in any new law, although the proposed legislation is supported by MP and disability rights advocate Marie Tidball as well as former director of public prosecutions Sir Max Hill. Rebecca Wilcox, the daughter of the terminally ill broadcaster and Childline founder Dame Esther Rantzen, said England and Wales must 'catch up with the rest of the world' in changing the law. She told Sky News: 'We need to show that we are an empathetic country that appreciates choice at the end of your life.' Amid reports some MPs who voted yes to the Bill in November could vote no on Friday, she insisted a majority of the public want the legislation to pass.
1News
11-06-2025
- Business
- 1News
KiwiSaver: Last chance to claim full $521 Govt contribution
KiwiSaver members have just weeks left to claim the full $521 Government contribution before it is halved under changes to the system announced at last month's Budget. If people contribute at least $1042.86 into their KiwiSaver accounts in the year to June 30, they can receive the maximum contribution of $521.43 from the Government. Those who contribute less still receive 50 cents from the government for every dollar they put in. However, as part of Budget 2025, Finance Minister Nicola Willis announced that the value of the government's $521.43 contribution to KiwiSaver was being halved from July 1. Individuals would now receive a maximum contribution of 25 cents per dollar of employee contribution, up to a maximum of $260.72 a year. ADVERTISEMENT Eligibility for this would also be limited to those who earn under $180,000 a year. Each year, thousands of people miss out on what is essentially free money, as they are not working, on a contributions holiday or are self-employed and aren't contributing enough. In 2024, about two-thirds of KiwiSaver members received the government contribution, and most of them, 77%, got the full $521.43. The contributions cost the government about $1 billion last year. Providers urge savers to act now ANZ investments managing director Fiona Mackenzie said last year, around 61% of members received the full government contribution and a further 16% a partial contribution, around $200 million to the scheme's members. "Contributions from our members are on track to be similar this year. We are really encouraged by this, considering the current economic conditions." ADVERTISEMENT She said ANZ offered a digital tool that helps customers track their progress toward the government top-up. "They'll get an estimate of how much they are on track to get, and an indication of how much more they need to contribute to ensure they get the full government contribution." $521.42 is up for grabs for the last time to anyone who contributes at least $1042.83 into their KiwiSaver scheme in the year to June 30. (Source: There's still time for those who haven't yet hit the $1042.86 threshold. ASB said it was proactively contacting customers not on track to receive the maximum contribution, particularly those who missed out last year. Executive general manager personal banking Adam Boyd said 73% of its eligible KiwiSaver members had contributed enough to receive a full or partial contribution. "Because this is the last year to receive the $521.43 from the government, we'd encourage New Zealanders to keep track of their contribution status and make sure they have contributed enough before the end of June to ensure they get the full amount, and the earlier the better," he said. ADVERTISEMENT "Every little bit counts and can make a big difference over time." BT Funds Management chief executive Nigel Jackson, who oversees the Westpac KiwiSaver Scheme, said members could make a one-off voluntary contribution to get them over the line. The morning's headlines in 90 seconds, including Austrian school shooting, Kiwisaver deadline, and Warriors injury worry. (Source: 1News) "People who are in a financial position to top up their KiwiSaver contributions to $1042.86 for the year should do so, to maximise their retirement savings for the year." Over the last two years, 44% of eligible Westpac KiwiSaver members missed out on the maximum top-up because they hadn't contributed the required $1042.86, Jackson said. "There may be a variety of reasons why people haven't contributed up to the threshold, for example, some members may be on parental leave, some may be working part time, or others may have temporarily suspended contributions. "However, if people can afford to top up their contributions, they should do so, as every dollar contributed up to the threshold has an immediate investment return of 50%." ADVERTISEMENT Fisher Funds general manager of KiwiSaver David Boyle told Breakfast last month that June 2025 will be the last chance to get the full $521.43 contribution. "If you have $1042.83 and you haven't put it in, get that 50 cents from the dollar from the government," he said. "If you can't get the full amount — because it's a lot of money — you can still put in $100 or $500. For every dollar, the government will give you 50 cents." What else is new with KiwiSaver? The Finance Minister also revealed some other changes to the KiwiSaver scheme during Budget 2025. Default employer and employee contribution rates will increase to 4% from April 2028. But rates will first rise to 3.5% from April next year in a "phased" approach. ADVERTISEMENT Some KiwiSaver benefits, such as employer and government contributions, will also now be extended to 16- and 17-year-olds. In growth forecasts, Treasury has assumed the higher 4% contribution rate could be offset by employers through lower-than-otherwise wage increases. The Government's changes are expected to save it $2.4 billion over four years or about $600 million annually on average. Extending eligibility to 16- and 17-year-olds is forecast to cost $29 million over four years or about $7 million a year. Most changes will be made automatically for KiwiSaver members.
