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FROM todays NLBC (formerly the BBC)

"It looks as if the government will soon be advised by Lord Turner to copy a new type of pension scheme that will be introduced in New Zealand on 1 April 2007.

It's going to be called KiwiSaver.

Simple idea

The plan was announced by the New Zealand government in its annual budget last May.

This is how it will work.

Whenever someone starts a job, they will - after eight weeks - be automatically enrolled into this additional version of the state pension scheme. It won't quite be compulsory. There will be a three-week window of opportunity to opt out. After that, you will be in. Workers will then be able to take their own personal KiwiSaver account with them from job to job. Contributions, at either 4% or 8% of salary, will be deducted from salaries by the Inland Revenue, using the country's existing PAYE tax system. The Revenue will keep the money for the first eight weeks during which time the saver can decide where the money should be invested. People will be given a range of registered private investment schemes from which to chose. There will though be no state guarantee in case the investment returns are poor. Some people will not be automatically enrolled - those under 18 years old and existing employees. However existing workers and the self-employed will be able to opt in.

Locked in?

The aim is to save for retirement, so funds will be locked in until the age of 65.

There will be some exceptions:

financial hardship

permanent emigration

and a facility to withdraw funds after at least three years of contributions, to put down as a deposit for a first home

(?????????????????????????WTF - i thought it was supposed to be for a pension - its just to prop up the pyramid house price scam )

Introducing the idea, the finance minister, Michael Cullen, said:

"Our estimates are that KiwiSaver will enable around 3,000 households a year to realise the dream of owning their own home."

Other contributions

The government will chip in something too.

There will be an initial contribution of NZ $1,000 (£400) for each person, which will be locked in for at least five years.

And after three years of saving, savers will be offered a deposit from the government to buy their first home, worth at least NZ $1,000 per year of saving, up to a maximum of NZ$5,000 for five years.

Employers will be encouraged to contribute to KiwiSaver accounts but will not be compelled to do so.

So the scheme has already been described as a home deposit saving policy with a retirement option attached. "

its complete madness - muppets will end up spending their "pension" on £1million ex-council hovels with their pension funds

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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