Quite profound. Totally agree. I have a tiny bit in Kiwisaver. Opted out initially and just add the $1040 odd to get the top up. The rest I do myself.
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Sure. However, many of those who pay the current minimum contribution Kiwisaver rate could be on lower incomes, and need even penny to survive NZ's high cost society with higher inflation now. More people could opt out of Kiwisaver if minimum KiwiSaver contribution rates were increased.
If the government were to means test government superannuation, they would take into account assets not only in Kiwisaver, but those elsewhere held in your name, or that have been settled into family trusts. Means testing may become similar to what happens with the residential care subsidy.
Similar to a previous poster, I treat KiwiSaver as the managed fund exposure in my investments. I chose an active manager with solid performance. As far as govt control and oversight is concerned, I think it actually has the benefit of keeping costs under control. I plan to boost contributions in the next 12 years as I get closer to retirement age, and switch to a more conservative fund at some stage. It would be frustrating for me that DIY is not available, if the balance comprised the majority of the nest egg.
This thread was started August 2015.
Dark Monday can’t be too far away?
Just shows, no one really knows the grizzly bears timing. Better to ride the storms and stay in the market. Peaks out number the troughs.
What is coming? Interest rates are hardly high by historical standards, oils heading south. Sure overly indebted house buyers will have to batten down the hatches but most companies seem to have set themselves up with low interest rate debt for the near future. Bring back some tourists and a few more migrant workers and nz should be ok.
National Super should already be income and asset tested IMO. No need to pay welfare to those not in need.
Yes we know you paid taxes all your life but national super is funded out of current taxation i.e. the younger generation who not only have tax deducted from their wages, but Kiwisaver as they save for their retirement as well as paying for the greedy generations retirement. Not only that they also have student loan deductions as tertiary education became too expensive after the last boomer graduated.
I predict the biggest change to Kiwisaver years from now will be to force people to take an annuity rather than lump sums.
To bring it back to the thread, not this Monday. Mike2020 may have hit the nail on the head.