The Greens are releasing new economic analysis on ACT's proposed KiwiSaver changes, noting the current Coalition party's plans will only increase inequality.
“When ACT released their fiscals, quick calculations made it clear their plan was welfare for the wealthiest. Fulsome economic analysis proves that their proposed KiwiSaver changes would hugely benefit the richest, at the cost of the poorest New Zealanders,” says Green Party Co-leader Chlöe Swarbrick.
“The highest-income 20 per cent of households would receive 63 per cent of the policy's $2.4 billion net cost, an average of $3,800 each over four years, while the lowest-income 20 per cent would receive 1 per cent, an average of about $40.”
“Those on the lowest incomes would suffer under this change to KiwiSaver. The wealthiest 20 per cent of households would receive 73 per cent of the policy's net benefit, while the least wealthy 20 per cent would be $580 worse off on average.”
“Under ACT's plan, a 40-year-old earning $50,000 would retire with about $28,500 more in their KiwiSaver, while a 40-year-old earning $500,000 would retire with $219,400 more. Almost half of all KiwiSaver members have less than $20,000 in their accounts, and on average they would lose more than $300 each over the next four years.”
“In 2025, New Zealanders made 58,460 hardship withdrawals from KiwiSaver and took out $514.8 million to get by. ACT's policy would take more Government support away from the people who can least afford to save, while the people with the largest balances receive the largest tax cut.”
“All this from a Coalition who also proposes to raise the retirement age, which they also know would disproportionately harm working people.”
“KiwiSaver should be extra savings on top of NZ Super. It should not be a tax loophole for the super-rich to grow their balances with tax-free earnings.”
“New Zealanders deserve proper economic analysis of all political promises this election. The Greens are incredibly proud to be putting forward the necessary big solutions to our big problems, to lower the cost of living, lower climate changing emissions, and build an economy that works for all of us,” says Swarbrick.