Cullen calling for rethink on Kiwi Saver

The architect of the Kiwi Saver scheme Sir Michael Cullen is calling for a revamp of the scheme to help cut long term costs of superannuation to the Government.

He wants to see Kiwi Saver made compulsory by 2016 and increase contributions from both workers and employers initially to four percent, rising to six percent for workers and eight percent for employers.

Business correspondent Roger Kerr has told Newstalk ZB's Mike Hosking Sir Michael is also suggesting half of the nest egg in an individual's name be used to buy an annuity to provide income in retirement.

"So basically half the Kiwi Saver retirement savings would be income-tested away and I can't see that having a lot of public support as it means we move away from the current 'pay as you go' superannuation scheme from the Government."

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