Quote Originally Posted by Sideshow Bob View Post
We are clearly behind late to the party in NZ with Kiwisaver and a number of other pension/super measures and incentives. With 'expectations' or a 'right' for many of retirement at 65, along with healthcare costs, demographics and life expectancy, Kiwisaver for many pay for a good overseas trip and that's about it. It certainly won't be enough to live on happily ever after.

Clearly there needs to be more savings and also tax advantages to do so - so there is a runway into means tested state super, or similar.

Problem is also the political will to raise the pension age, impose more costs on business (Left has no issues with this), lower tax take from Kiwisaver and have a meaningful plan. Some of these measures would be unpalatable to voters, some would be vote winners.....
When Kiwi Saver was introduced, I laughed at the 3% contributions (with employer matching minimum 3%). You hit the nail right on the head, as I said back then and insist the same today, KS will never get people rich enough for retirement. It's not a savings scheme that is designed for people to rely on for pension at senior age. Nor would you find any NZ financial advisor that would agree on the short comings of KS. I've been very vocal on this part in this forum for many years but people take insult for when I spew the reality.

The NZ gov't really needs to look at what Canada is doing. Every few years or so the federal gov't gives more and more back to the working class, while increasing taxation on the ultra wealthy (through clawbacks on their pension when they file their tax returns). Back in 2009 when the Tax Free Savings Account (TFSA) was introduced, I told my dad that I would open the account for him and you just sit back and watch. TFSA offered any Cdn resident to invest their contributions that would grow 100% tax free. At introduction the maximum allowed was $5000 for which my father said that was chump change. He is correct and the reality was, TFSA was not enough to boost the impoverish Canadians. So all sorts of other 'tax free' accounts came about, and recently, the "First Home Savings Account". Unless you had luck like I had with my father's TFSA (keep in mind, one can only contribute each year $5,000 back then, to now indexed to inflation so $6,000 for 2022 onwards), the end result is only what want would end up having in Kiwi Saver, though I would believe the TFSA would have the better edge being 100% tax free vs KS being paper gain taxed under FIF every year that's positive. Anyways here's the end result of my father's account:

https://i.imgur.com/vniwFw0.png

NZ is being left behind in the realm of individual financial literacy and independence. I'll repeat again, the financial advisers are helping themselves as Warren Buffet says, "The helpers help themselves" ; so any managed fund has no incentive to maximise the returns for their investors as they they charge hefty management fees and above all, IRD being the biggest take through taxation.