‘FOMO is back!’

[Bjauck]

In your 20's the biggest and best investment you can make is in yourself, it's not raiding your KS if you can leverage that money to increase your earning potential. I have benefited hugely from withdrawing some of my KS to purchase my first home at 24.

I think the bigger problem here is the poor understanding most NZers have of money and how it works, all of my knowledge and experience has been gained from actively using my money/assets. Nobody will learn anything from passively contributing to KS, many participants are still in the default fund they ended up in.

Owning your own principal house remains the best and most tax efficient investment/pension scheme in NZ. Governments will try to protect the value of housing (to keep a significant part of the voting electorate happy). You can leverage and trade your way up the ladder without attracting capital gains tax. You can enjoy a healthy tax free dividend from your investment by way of its accommodation value or net imputed rent. As with most asset purchases timing your entry can be important though!