Kiwisaver - hmmmmmmmmmm, perhaps, perhaps not.
Quote:
Originally Posted by
PartyPooper
. . . I'll probably start Kiwi saver when its paid of and increase my savings account payments per week from 50 to 70. Should still leave an extra 50 or so for some extra shares in SUM =D
I am a little wary of Kiwisaver.
I see it becoming a political football over the next decade or so.
Initially a retirement savings vehicle, it has already been subverted into a mechanism to help raise the deposit for a (first) house. Who knows what the next "tweak" will be? And who by ? And when ?
The tax credit has already been halved. When we start getting Kiwisaver millionaires, expect it to be cut again.
We then come to the "exit" scenario. There has been some discussion over the past year about what to do on retirement, when member's Kiwisaver funds become available.
I suspect that a few horror stories of people blowing their nest-eggs will be used as evidence of the "need to protect people from using their own money for their own purposes".
I suspect that the fund management industry will lobby hard for withdrawals to be taken as an annuity. The past year has seen the UK print media full of annuity horror stories. Be warned.
I suspect that suggestions of a "withdrawal" tax will appear.
I suspect that politicians will listen to the suggestions, and that over time, Kiwisaver will become ever more restrictive.
Good luck with it. ;)