Loos­en­ing the Ki­wiSaver lock

Auckland City Harbour News - - MILESTONES - ROB STOCK

I read the other day that I should be stick­ing 10 per cent of my salary into Ki­wiSaver.

No way. At least, no way un­til the Gov­ern­ment re­designs it.

I to­tally agree that sav­ing just 3 per cent of your salary into Ki­wiSaver isn’t go­ing to be enough for a glam­orous re­tire­ment.

But Ki­wiSaver isn’t the place to put more than the min­i­mum amount needed to get your em­ployer’s con­tri­bu­tion, and the tax­payer-funded mem­ber tax credit.

The re­ally odd thing about Ki­wiSaver is it teaches peo­ple to in­vest in di­ver­si­fied port­fo­lios of cash, shares and bonds, and then dis­cour­ages them from sav­ing more than the ab­so­lute min­i­mum into it.

It’s a de­sign fault. It could be fixed.

Let me ex­plain us­ing the ex­am­ple of a per­son aged 65 who is still work­ing. This elder cit­i­zen can save into Ki­wiSaver, with­out the money be­ing locked away.

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