Kiwiblog remains opposed to compulsory super because he is concerned that politicians of one stripe or another will eventually be tempted to spend the money on a pet project - rather than on funding citizens' retirement. What he overlooks, however, is that we already have a risky arrangement in place. It is called income tax and national superannuation. A new compulsory savings scheme should tag all funds for funding citizens' retirement and should be in the name of specific individuals. It should not be accessible for spending by government - unlike the present tax & spend arrangement.
The main benefit of a compulsory retirement savings scheme would be reduce New Zealand's dependence on overseas savings and capital for investment. The consequence of decades of borrowings - largely to fund housing - has been to increase the per capita debt of NZ towards to Icelandic proportions. A sovereign state cannot continue with such an approach without either the receivers one day being called in - in the form of the IMF in the case of countries - or dramatic reductions in citizens' living standards. Neither prospect is something New Zealanders can be blase about. Here's hoping the government has the courage to move to a compulsory retirement savings scheme - with safeguards to keep politicians away from our nesteggs.