How much new saving will kiwisaver produce?

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dc.contributor.authorGibson, John
dc.contributor.authorLe, Trinh
dc.date.accessioned2008-12-12T03:06:27Z
dc.date.available2008-12-12T03:06:27Z
dc.date.issued2008-03
dc.description.abstractAfter two decades of tax neutrality for private saving, New Zealand policy changed radically with the recent introduction of tax incentives for KiwiSaver. A key issue for tax-favoured saving schemes is the extent to which existing saving is reshuffled versus new saving created by reduced consumption. Using data from a nationwide survey carried out by the authors, we estimate that each dollar of KiwiSaver balances represents only $0.09-$0.19 of new saving. The rest is either reshuffling amongst existing saving and debt by KiwiSaver members, or else taxpayer and employer transfers which reduce national saving elsewhere. Homeowners are least likely to fund their KiwiSaver contributions by reducing spending, indicating possible mis-targeting since owners are often blamed for excessive consumption arising from house price wealth effects. There is little evidence that KiwiSaver affects either the reported trend in saving or the presence of dis-saving. Since only one-tenth of households report negative saving, KiwiSaver may be a costly and ineffective solution to a relatively small problem of insufficient household saving.en_US
dc.format.mimetypeapplication/pdf
dc.identifier.citationGibson, J. & Le, T. (2008). How much new saving will kiwisaver produce?. (Department of Economics Working Paper Series, Number 3/08). Hamilton, New Zealand: University of Waikato.en_US
dc.identifier.urihttps://hdl.handle.net/10289/1595
dc.language.isoen
dc.publisherWaikato Management Schoolen_NZ
dc.relation.isPartOfWorking Paper in Economicsen_NZ
dc.relation.ispartofseriesDepartment of Economics Working Paper Series
dc.subjectKiwiSaveren_US
dc.subjectretirement savingen_US
dc.subjectsubstitution effectsen_US
dc.subjecttax incentivesen_US
dc.titleHow much new saving will kiwisaver produce?en_US
dc.typeWorking Paperen_US
pubs.elements-id53512
uow.relation.series3/08
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