Super Fund contributions to resume Friday

  • 14/12/2017
London, England, United Kingdom
Photo credit: Getty

Half a billion dollars will be poured into the New Zealand Superannuation Fund from Friday as part of a Government plan to kickstart increased contributions.

During the election campaign Labour committed to resuming contributions, which were stopped during the global financial crisis.

"We will restart contributions to the Super Fund tomorrow, fulfilling our promise to New Zealanders," Finance Minister Grant Robertson said on Thursday.

The payment on Friday, the first of $500 million this financial year, is mostly symbolic, Mr Robertson said.

But payments will ramp up over time to get back towards what was intended when it was established by Sir Michael Cullen in 2001.

Contributions will double to $1 billion in the 2018-19 financial year, growing to $2.5 billion by 2021-22.

"This isn't a policy about tomorrow, or next year, or even the next decade; it's about investing responsibility to enhance the long-term wellbeing of New Zealanders," Mr Robertson said.

Over the next five years the Government has committed to investing $7.7 billion into the fund.

NZN