KiwiSaver

Superannuation funds, including KiwiSaver, will need to rethink their investment strategies if the partial sale of state-owned assets is delayed, Deloitte Dunedin managing partner Steve Thompson says.

KiwiSaver turned 4 on Friday but birthday celebrations were kept low key. Despite accumulating $8 billion in savings, KiwiSaver, like other superannuation schemes before it, has become a political football. Business editor Dene Mackenzie reports.

No voter should be in doubt now about the choices that will be before him or her at November's general election. Unusually in New Zealand politics, the ruling party has declared its hand well in advance of the poll, seeking a specific mandate across several policy areas to govern for a further term.

The KiwiSaver tax credit will reduced, Working for Families reduced for higher income people and the student loan scheme adjusted, Prime Minister John Key says.

Workers face lower wage increases in future as the Government moves to get employers to increase their KiwiSaver contributions for their employees from April 1, 2013.

Kiwisaver continues to climb in popularity as changes to the scheme containing the retirement savings of 1.7 million New Zealanders become increasingly likely.

The Government will on Thursday announce changes in the Budget for the hugely popular KiwiSaver scheme, with Deloitte Dunedin tax partner Peter Truman not ruling out the introduction of compulsory superannuation.

While New Zealand workers will have to fork out more for savings under new KiwiSaver plans, MPs' superannuation schemes are to be left untouched.

Employers would look for definite signs the economy had improved before becoming too enamoured with lifting contributions to KiwiSaver, Otago-Southland Employers Association chief executive John Scandrett said yesterday.