8 Dec 2008

Key confirms rethink over KiwiSaver

3:14 pm on 8 December 2008

Prime Minister John Key has confirmed that the Government will not be making some of the changes to KiwiSaver it proposed before this year's election.

During the election campaign, National said though employees could still contribute 4%, it would cap employer contributions at 2%.

However, Mr Key says it has been looking the issue of lower income New Zealanders who might miss out and reconsidering its policy.

He says the change will mean that the Government will save $700 million over four years less than it intended under its planned changes to Kiwisaver.