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Briefing Note 28 - A flexible approach to the NPSS
Briefing Note 21 assessed the New Zealand government's proposals for the KiwiSaver. Since then, the Pensions Commission has proposed a National Pensions Savings Scheme (NPSS), referring to the KiwiSaver as a comparable model. KiwiSaver is of interest as it is the first proposal for a national auto-enrolment savings scheme and far enough ahead in practical implementation to offer some lessons for the UK.
This Briefing Note takes a closer look, interviewing officials, politicians, providers, employers and others in New Zealand preparing to introduce KiwiSaver in April 2007. The Briefing Note covers two suggestions as the UK Government considers the NPSS and alternative proposals.
- The NPSS is a very prescriptive pension product. A more flexible savings product could satisfy wider policy aims and be more attractive to would-be savers.
- The NPSS requires major change overnight for Government, providers, employers and individuals. A phased implementation, working off existing infrastructure, would be less risky but could still achieve a similar result.
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