:: zone3 ::

The issue I have with Kiwisaver is the lack of clear information going out to the average public so that people can easily decide if it is the right thing for them.

So government agencies are running around encouraging people to sign up. The fund providers (as the whole scheme makes use of private fund providers) are as well. In both cases it is in their best interest people join. However, for some people it may not be the best idea.

The key group that I have not seen clear information be published for are the people with debt. Now as a lot of people have mortgages in NZ and some have high interest credit card debt. Between the two, that’s big chunk on the country.

Retirement saving is a “good thing”, but in general clearing debt first is usually a better thing!

With the incentives, it is not straight forward to decide if putting money into clearing debt vs long term savings is best. This in my view where the public needs better information.

The average person does not sit down and do financial models of their various options, if the government is going to push a retirement scheme they also need to give the average person clear information to make a decision in the individuals best interests…