National Government’s failure to contribute to Super Fund is costing it billions of dollars, it is claimed…

NZ Super Fund chairman Gavin Walker said double-digit results couldn't be expected to continue indefinitely.

NZ Super Fund chairman Gavin Walker said double-digit results couldn’t be expected to continue indefinitely.

New Zealand has missed out on adding billions to its retirement savings pot over the past year because the Government is not contributing to the NZ Superannuation Fund.

The NZ Super Fund revealed it returned 14.6 per cent after costs and before tax in the year to June 30. It finished the year at $29.5 billion, up $3.1b on the year before.

The fund’s results show that the Government would have been $2.9 billion better off if it had made contributions over the year, instead of using the money to pay down its debts.

NZ Super Fund chairman Gavin Walker said the result was an excellent one.

“The past year has continued a pattern of very strong, above-market returns.”

Since the Government stopped contributions in 2009, the fund has gone through a period of double-digit returns, averaging 16.8 per cent over the past five years.

READ MORE: Government should restart contributions

http://www.stuff.co.nz/business/industries/72105340/stopped-contributions-cost-nz-super-fund-billions

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s