Originally Posted by
Arthur
The point is Peat that it is an illusion that "low risk" portfolios are safer. In the long term "low risk" Kiwisaver portfolios are expected to be worth only half the value of "high risk" ones. To put it another way the "low risk" portfolio has potentially "lost" 50% of the persons retirement savings. Low short term risk = very high long term risk. Kiwisaver is longterm, hence "low risk" portfolios are far to dangerous to let the general public near. If I ruled the world all Kiwisaver investors with more than 20 years to retirement would default to aggressive funds (for their own safety) and It would be compulsory for the fund managers to invest in venture capital and companies with high potential. Unfortunately the NZ public is far too financially illiterate for that to happen, much to the countries cost.