Latest news with #FrancesCook
1News
23-05-2025
- Business
- 1News
Benefits, KiwiSaver to be means-tested — so why aren't pensions?
A Government decision to means-and-income-test support available to children and younger people, but not alter the eligibility for NZ Super, has prompted questions from some commentators. As part of Budget 2025, the Government announced it would income-test eligibility for the Best Start payment in the first year of a child's life. This will affect about 60,000 families who previously would have been able to access the money, before being income tested in the child's second and third year. Teenagers who are receiving JobSeeker benefits will be assessed against a "parental assistance test" which will determine whether their parents could provide them financial support. The member tax credit in KiwiSaver will be halved and not available to anyone earning over $180,000. But anyone earning at that level was still entitled to the full NZ Super payment. "As one of my team members commented — this Budget was all about taking away from young people and giving to the older generation [through] extra cancer treatment, rates relief for Gold Card members and continuation of NZ Super," said Rupert Carlyon, founder of Koura KiwiSaver. "For young people, we are now means testing KiwiSaver contributions, Best Start payments and not providing welfare to those under the age of 20." He said younger people would also be affected by a lower level of investment in infrastructure. Financial journalist Frances Cook told Breakfast she was 'very concerned' by some of the changes made to KiwiSaver. (Source: Breakfast) "The Budget is described as a budget forcing people to pay their own way where they can. Though NZ Super remains untouched, despite hundreds of thousands of Kiwis receiving it that do not need it." He said NZ Super should be means tested in the same way but it was not politically feasible for the government to do so. "Young people need to be better at voting to drive through change that benefits them." Shamubeel Eaqub, chief economist at Simplicity, said he too thought it was interesting that the KiwiSaver incentive would not be available to people earning more than $180,000 but no such test applied to the pension, which costs nearly $25 billion a year. "It's incoherent... incentives for Kiwis to save for their future is means-tested, but New Zealand Super — which is universal welfare for older people — is untouched." Asked on Nine to Noon her thoughts on means-testing superannuation, Nicola Willis said it was not the Government's policy. "We remain committed to universal New Zealand superannuation." She said National had not yet had a caucus discussion on changes to superannuation. "But I'm on the record at the last election campaign that we campaigned for the age of eligibility for New Zealand superannuation to be lifted. That was to make New Zealand superannuation more affordable, and more sustainable, and to reflect the fact that New Zealanders are working for much, much longer. We campaigned on that because I believe it was the right thing to do… Labour weaponised that against us."
The Spinoff
22-05-2025
- Business
- The Spinoff
KiwiSaver just changed – what should I do with my money now?
With government KiwiSaver contributions set to halve, is there a better way to save for retirement? Frances Cook breaks it down. Love it or hate it, KiwiSaver just got a shakeup. The government contribution is being halved, from $521 to $260 a year. And if you're earning a good income, over $180,000? You'll lose it altogether. I'll be honest from the get-go: I don't love it. KiwiSaver already doesn't have as many perks as schemes like Australia's Super, with its generous tax benefits, and much higher employer contributions. Frankly, we're losing enough of our bright sparks to Australia, and don't need to lose any more. To be fair, the KiwiSaver changes aren't all bad, either. Sixteen and 17-year-olds finally get KiwiSaver benefits, and it's about time. The government has also bumped up the contribution rate, which will slowly shift over the next two years to be a default 4% from you, and 4% from your employer. Whether you're team Love It, or team Hate It, let's lay out exactly what's changed and what you need to know to make sure your future nest egg is working smarter, not harder. The good: a bigger employer boost Bumping up the minimum contribution to 4% means more going into your savings. That's great, in theory. Especially when it's partly coming from your boss. Here's the fine print you should watch out for. Some employers use a 'total remuneration' model, where your KiwiSaver contribution is technically included in your salary package. So that 4% might be coming from money you would've otherwise been paid in cash. In fact, Treasury's own analysis expects 80% of that extra contribution to be offset by lower pay rises. A savings boost is still better than nothing, but let's not pretend it's all upside or bonus funds. Still, if you're lucky enough to have an employer actually contributing extra to your KiwiSaver, that compound growth will help you a lot over time. The bad: cutting the government top-up One of KiwiSaver's big perks has always been the government contribution. It used to be that if you contributed at least $1,042.86 a year, the government would chip in $521. That perk has now been halved, to only $260. Just 25 cents for every dollar you put in (up to $1,042 of your dollars). Sure, I guess it's better than zero, but it's a downgrade. And that hurts, especially for self-employed people, who don't get employer contributions and often relied on that top-up as their only extra boost. If that's you, it's still worth putting in $1,042.86 each year. That $260 match is worth it, and still a good slice of cash to have. It's just a little galling to have it constantly chipped away at. The risk: political football syndrome One of the most common things I hear in my inbox right now? 'How can we trust KiwiSaver if the rules keep changing?' It's a fair question. Retirement planning is long-term. And tinkering by politicians doesn't exactly build confidence, especially when the tinkering always seems to be in the form of cutting back, rather than building up. But let's zoom out. KiwiSaver is still one of the best tools available for building long-term wealth. Your money is legally yours. It's not held by the government, but by investment providers. The government can tweak the incentives, but they can't take your money. That said, yes, changes might keep coming. So the key is to take charge of what you can control. One of the biggest mistakes people make with their KiwiSaver is having it in the wrong fund. Conservative when it should be growth, or growth when it should be conservative. It's a setting that takes 10 minutes to change, and could mean a difference of hundreds of thousands of dollars by the time you retire. Far more than any government contribution would add up to. Not sure which one you should be using? Try the Sorted Fund Finder. It's free, independent and really easy to use. What next? This Budget made one thing painfully clear: no one's handing out freebies. If you want a good retirement, you'll need to build it yourself. That means reviewing your KiwiSaver, boosting your savings rate where you can, and making sure you're in the right fund. You don't need to do everything at once, but ignoring it altogether will cost you. Pick one thing. Change it. Then keep going.
Scoop
16-05-2025
- Automotive
- Scoop
ChrisFix, Frances Cook And Tim Warren Tell Kiwis How To Buy A Car
Press Release – AutoFlip ChrisFix the worlds largest DIY automotive YouTuber with over 10.6 million subscribers offers practical tips for everyday buyers. Top automotive experts and a leading financial journalist unite to offer exclusive advice for smart car purchasing in New Zealand In an era of rising living costs and tighter budgets, buying a car remains one of the biggest financial decisions a Kiwi can make. Recognising that even the most exciting purchase can turn into a costly regret, Autoflip is proud to unveil an exclusive guide featuring internationally renowned DIY automotive expert ChrisFix, acclaimed New Zealand financial journalist Frances Cook, and seasoned car market commentator Tim Warren, Editor of Drive Weekly. Expert Advice from ChrisFix ChrisFix – the world's largest DIY automotive YouTuber with over 10.6 million subscribers – offers practical tips for everyday buyers. He advises: Stay within your budget: 'For ordinary people looking for a car, I would just get something that is in your price range, or even slightly less. Spending less means you have funds to put towards any necessary fixes – because nearly all cars need a bit of attention, even brand-new ones.' Consider a nearly-new model: 'Buying a new car can be a luxury many can ill-afford. Opting for a car that is three or four years old can save you 20–30% without compromising on reliability or warranty.' Enjoy your choice: 'Life's short – drive the car you love. Choose a vehicle within your budget and relish the experience.' Know your car: 'Understanding basic car maintenance, like checking fluids or changing a tyre, can save you a fortune in the long run.' Insight from Frances Cook Financial journalist Frances Cook, celebrated for her clear and unflinching advice on personal finance, weighs in on the investment aspect of car ownership: 'Cars are a classic depreciating asset – they lose value from the moment you drive them off the lot. That said, a well-chosen used car, particularly one between 2 and 10 years old, often offers the best balance between cost and reliability.' On financing, she cautions: 'Whenever possible, buy in cash. Debt only adds to your expense through interest and fees. If a loan is unavoidable, aim to clear it within three years to minimise additional costs.' Tim Warren on Safety and Research Automotive expert Tim Warren highlights the importance of safety and thorough research: 'Safety and reliability are paramount. Look for vehicles with low maintenance costs and straightforward repairs.' 'The biggest mistake buyers make is not researching their chosen car thoroughly. With abundant free resources such as YouTube reviews and car forums, there is no excuse not to be well-informed.' A Booming Used Car Market Recent statistics underscore the shift in the market: new vehicle registrations have declined by 14.1% since January 2024, while Toyota's certified pre-owned sales have surged by 39% in 2024, with used car imports reaching record levels. As affordability drives demand, smart buyers are increasingly turning to second-hand options for the best deals. About Autoflip Autoflip is New Zealand's leading platform dedicated to connecting car owners with licensed dealers. Whether buying or selling, Autoflip ensures a smooth, efficient process that maximises value and minimises hassle
Scoop
15-05-2025
- Automotive
- Scoop
ChrisFix, Frances Cook And Tim Warren Tell Kiwis How To Buy A Car
Top automotive experts and a leading financial journalist unite to offer exclusive advice for smart car purchasing in New Zealand In an era of rising living costs and tighter budgets, buying a car remains one of the biggest financial decisions a Kiwi can make. Recognising that even the most exciting purchase can turn into a costly regret, Autoflip is proud to unveil an exclusive guide featuring internationally renowned DIY automotive expert ChrisFix, acclaimed New Zealand financial journalist Frances Cook, and seasoned car market commentator Tim Warren, Editor of Drive Weekly. Expert Advice from ChrisFix ChrisFix – the world's largest DIY automotive YouTuber with over 10.6 million subscribers – offers practical tips for everyday buyers. He advises: Stay within your budget: 'For ordinary people looking for a car, I would just get something that is in your price range, or even slightly less. Spending less means you have funds to put towards any necessary fixes – because nearly all cars need a bit of attention, even brand-new ones.' Consider a nearly-new model: 'Buying a new car can be a luxury many can ill-afford. Opting for a car that is three or four years old can save you 20–30% without compromising on reliability or warranty.' Enjoy your choice: 'Life's short – drive the car you love. Choose a vehicle within your budget and relish the experience.' Know your car: 'Understanding basic car maintenance, like checking fluids or changing a tyre, can save you a fortune in the long run.' Insight from Frances Cook Financial journalist Frances Cook, celebrated for her clear and unflinching advice on personal finance, weighs in on the investment aspect of car ownership: 'Cars are a classic depreciating asset – they lose value from the moment you drive them off the lot. That said, a well-chosen used car, particularly one between 2 and 10 years old, often offers the best balance between cost and reliability.' On financing, she cautions: 'Whenever possible, buy in cash. Debt only adds to your expense through interest and fees. If a loan is unavoidable, aim to clear it within three years to minimise additional costs.' Tim Warren on Safety and Research Automotive expert Tim Warren highlights the importance of safety and thorough research: 'Safety and reliability are paramount. Look for vehicles with low maintenance costs and straightforward repairs.' 'The biggest mistake buyers make is not researching their chosen car thoroughly. With abundant free resources such as YouTube reviews and car forums, there is no excuse not to be well-informed.' A Booming Used Car Market Recent statistics underscore the shift in the market: new vehicle registrations have declined by 14.1% since January 2024, while Toyota's certified pre-owned sales have surged by 39% in 2024, with used car imports reaching record levels. As affordability drives demand, smart buyers are increasingly turning to second-hand options for the best deals.
Scoop
03-05-2025
- Business
- Scoop
Teaching Kids About Money Early Helps Them Avoid ‘The Bear Traps'
Article – RNZ The sooner you start making smart decisions about money, the better, says Making Cents podcast host Frances Cook. RNZ Online There's one question that financial journalist Frances Cook gets asked repeatedly. 'The number one thing that people say to me every single time is, I wish I knew this earlier.' Cook, who hosts the podcast Making Cents says the government's announcement of financial literacy education for students in years 1-10 starting in 2026 then is a good step towards ensuring young people get on the right financial track while they have time on their side. Frances Cook is a financial podcaster, journalist and reformed 'money mess.' Related stories: 'Because the thing about money is money and time are so strongly linked,' she tells RNZ Nights. 'If you don't have much money, then you can still get ahead if you've got time on your side. 'So, the earlier you can start with some of these things, the easier it is for you to get ahead.' Before she started tackling her own financial situation in her 20s, Cook believed money planning was for others. She says this belief remains rife in New Zealand. 'We absorb all of these cultural narratives about money, and that's just not for someone like me, is a really, really tough one, because we often don't think it consciously, but it will stop us even looking for the low-hanging fruit.' Even just changing your approach to KiwiSaver will make a difference, she says. 'You don't have to put in any extra money. Change a couple of KiwiSaver settings, and you can be doing so much better in life.' Getting in early can help people starting out in their career make smarter early decisions that will bear fruit many years later, she says. 'You're getting in on the ground level, and you're talking to kids in a classroom, you're making money less of a taboo in the first place, and that, in itself, is actually just as powerful as any of the dollars and cents learning.' This deficit in financial knowledge entrenches inequality in New Zealand, she says. 'We don't want a landed gentry situation, where if your parents are wealthy and they understand money and they teach you about money, then you get this big head start in life. 'We already have that a little bit with the bank of mum and dad being so important for people getting into their first homes. 'If we also have that [inequality] for the mere knowledge of how money works, the mere knowledge of the bear traps to avoid, and the little things that can get you ahead, even if you don't have much money, then we're going to have very quickly, a very unequal society.' She suggests year 1 students should be taught the very basics about just what money is and how it works. 'Just getting them comfortable with the idea of money, that things cost a certain amount. Once it runs out, it's gone. 'Having open conversations about what people around them do with money, encouraging curiosity, encouraging the ability to ask where it comes from? What it's doing? How is money earned?' Older students can be introduced to more sophisticated financial concepts, she says. 'How can you give them as much ownership as possible and a safe space to fail? If you want to put money away for them so that they can learn how to do things like invest, love that, but don't do it for them. 'Give them ownership of it. If you're helping them get into KiwiSaver or Sharesies or whatever else, let them choose the investments. Let them make some bad ones. 'Let them see how the market works. It goes up and down, because that is an amazing time for them to experiment while they've still got the safety net underneath them.'
