KiwiSaver contributions a perk for some over-65s
Telecommunications engineer Kevin McGurk, who is about to turn 72, is still contributing to his KiwiSaver, and so is his employer.
Vodafone is one of the few companies providing matching contributions to employees’ KiwiSaver schemes after they turn 65.
These businesses don’t have to, and could save a few dollars each week even if it would seem to undervalue older workers compared to their younger colleagues.
‘‘We don’t discriminate on age, so we wouldn’t treat our over65 employees any differently to employees under 65,’’ said Emily McConnell, human resources services manager at Vodafone.
Joe Bishop from KiwiSaver provider Kiwi Wealth said few employers made matching contributions to KiwiSaver for employees over the age of 65, but as the workforce aged, those that did could position themselves as ‘‘employers of choice’’.
‘‘In much the same way that some employers offer staff certain perks and benefits – free or subsidised health insurance, for example – those that choose to continue making contributions to the KiwiSaver accounts of their staff after they turn 65 will be very appealing,’’ Bishop said.
‘‘It’s likely older Kiwis, many of whom want to work beyond 65, will prefer employers that voluntarily make contributions as a policy.’’
Employers are not required to make the minimum 3 per cent employer contribution to their staff members’ KiwiSaver accounts when they turn 65, he said.
McGurk’s getting more than 3 per cent.
‘‘We offer 4 per cent, which is slightly above the legislation. It’s standard for all employees,’’ said McConnell.
McGurk continues to work because he loves it, though now does only four-day weeks, because he can, and to fund his love of travel.
He gives the lie to the myth that older workers are less able to keep up with change, or advances in technology. By keeping his skills current he has survived many restructurings.
When he started work on telecoms in the early 1960s, data travelled up telegraph wires at 50 bits per second. The rate now is 400 million million.