Greg Smith

I've spoken with him that both of us are reflecting in our own ways about what putting country first means at a moment like this.

employee-employee contributions to 6% by 2032 and make it compulsory, and obviously the baby bonus.

But look, you know, aiming for 6 plus 6, that's actually something we've been calling for, mentioned that a few times, and yeah, that's going to be key to achieving better retirement outcomes.

Another good way of looking at it, Mike, you know, it took Australia 33 years to get to 12%, so we will have done it in about 25 years if that's...

But, yeah, just other points on that.

I think, you know, contribution rates are only part of the equation, a significant part, but, you know, fund choice also matters.

I think a lot of New Zealanders spend too long on conservative funds or default settings.

They might not be wholly appropriate.

And, yeah, the reality, cold reality is that, you know, New Zealand Super is a foundation, but, you know, not a complete retirement plan.

So there's going to be a shortfall for many.

You know, Massey University's research shows that a Metro couple needs around about a million bucks at 65 to live a comfortable retirement.

So...

Compulsion, you know, it's worked better in countries which have that rather than voluntary systems.

And you look at that government contribution for parental leave and employer contributions over 65, that makes a lot of sense.

But yeah, KiwiSaver at birth, you know, a lot of merit, obviously $1,500, that's what we're talking about.

But yeah, that's a meaningful amount.

So you look at compounding at 7%, that's $122,000 by age 65, but...

I'd say that's a seed, not a forest.

Long-term outcomes are going to be driven by decades of regular contributions.

And, of course, Mike, we have been here before.