Achieving KiwiSaver Evaluation Objectives: A cross-agency, multi-year evaluation of New Zealand's retirement savings scheme.
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Achieving KiwiSaver Evaluation
Objectives:
A cross-agency, multi-year evaluation of New
Zealand’s retirement savings scheme.
Rico Namay
National Research & Evaluation Unit
Inland RevenueKiwiSaver KiwiSaver is a voluntary, work-based savings initiative to help New Zealanders with their long-term saving for retirement. It has been in operation since 2007 and is designed to be hassle-free so it's easy to maintain a regular savings pattern.
Policy objectives to encourage a long-term savings habit and asset accumulation by individuals who are not in a position to enjoy standards of living in retirement similar to those in pre- retirement; to increase individuals’ well-being and financial independence, particularly in retirement, and to provide retirement benefits;
Evaluation objectives To assess: the early implementation and delivery of KiwiSaver; which of the key features of KiwiSaver are generating the expected outcomes; the response to KiwiSaver in order to understand the scale and pattern of take-up; the impact KiwiSaver is having on the saving habits and asset accumulation of individuals who are not in a position to enjoy standards of living in retirement similar to those in pre-retirement; the impact of KiwiSaver on competitive superannuation markets and the financial sector.
Stakeholders
Evaluation framework
Discussions out there
“KiwiSaver is merely a money-go-round. Over half
of the savings are funded by taxpayers, most of the
remaining savings are employers’ contributions and
money that members would have saved in other
forms.
-Dr. Trinh Le, the National
Business Review, 2008
People are farming the $1,000 kick-start
-VariousDiscussions out there
Viability of contribution rate will continue to
be discussed.
-Various
Decumulation will be a hot topic as KS
balances grow
-VariousWork done since 2007
Agency Topic Method Date
Treasury Accumulation of net wealth SoFIE-Inland Revenue linked data set 2014
Inland Revenue Value for money of incentives Administrative and survey data 2014
Inland Revenue Additionality and substitution Repeat of relevant questions from 2010 survey 2014
research (506)
Inland Revenue Value for money – qualitative 35 interviews providers (5), employers (15), 2014
members (10), non-members (5)
MBIE (Internal) Uptake of first-home Analysis of administrative data 2013
ownership package
Inland Revenue KiwiSaver early retirement Telephone survey of eligible members 2013
withdrawal
Inland Revenue KiwiSaver early retirement Survey and interviews with scheme providers 2013
withdrawal
MBIE Use and experiences of the Survey of 402 people and analysis of available 2012
KiwiSaver home ownership data
package
MBIE (MED) Report on KiwiSaver Supply Provider survey (24) and interviews (7); desk 2010
Side Evaluation. top
Treasury An initial evaluation of the Analysis of the 2010 Colmar Brunton survey of 2011
impact on retirement savings individuals
Inland Revenue Opting-out and taking Administrative data 2011
contributions holidays
Inland Revenue Survey of Individuals Survey of 825 individuals 2010
(members and non-
members)
Inland Revenue SME compliance costs Survey measuring 1,728 SMEs tax compliance 2009
costs
2010
Inland Revenue Automatic enrolment process Qualitative research with employers (20 2007
interviews) and employees (50 telephone
interviews)
Inland Revenue Implementation in the Employer panel: interviews with 34 employers 2007
workplace and 63 employees
Inland Revenue Employer’s awareness, Employer survey – 500 telephone interviews of 2007
understandings and reactions PAYE registered employers
to KiwiSaver
Inland Revenue The engagement model Scheme provider interviews (n=18) 2007Key changes to KS
Member contribution Member tax credit Revised disclosure rules
from 4% to 2% halved for KS fund managers
2008 2009 2010 2011 2012 2013 2014
Employer Employer Employee contribution
contribution taxed contribution from from 2% to 3%
2% to 3%Usefulness of the evaluation
“The evaluations were hugely important to the
recently-completed review of retirement income
policies. They helped inform 5 out of 17
recommendations to the Government. The review
would have been much less effective without the
evaluations.”
-Steering Group member
“Our involvement in the evaluation meant we had
access to KS data (which allowed us to work) on
modelling changes to the income caps for the first
home owner subsidies. (As a result) the income cap
and the max house price in some regions were
lifted.”
- Steering Group memberUsefulness of the evaluation
“An excellent example of different parts of the sector
coming together to work on a common purpose and
achieving far more than any one agency could have
achieved on its own”
-Steering Group member
“Generally the evaluation has been a model for large
and costly programmes”
-Steering Group memberUsefulness of the evaluation “In New Zealand, the KiwiSaver scheme has been subject to evaluation from its introduction in 2007... and has five elements: benchmarking, monitoring, communications, process studies and outcome studies…We were unable to find evidence of any similar evaluation in the other case study countries.” - Collard and Moore, Review of International Pension Reform, Department for Work and Pensions, 2010
Thank You
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