:: zone3 ::

A couple of weeks ago, I complained about the lack of information around Kiwi Saver options going out to the average public. Well, the whole scheme has now started and although there is more information beginning to come out, but the complaint still stands…

Was reading the Sunday Star Times today. They had an article comparing the various Kiwi Saver funds and I can across the follow literary gem:

Past performance is a better indicator of future performance, and stats are available from the likes of FundSource and Morningstar, and are available in the newspaper, but beware: past performance is no indicator of future performance.

Without looking too closely at this multi clause eyesore, that I’m sure would give both Struck and White a hernia, lets look at the first and last clauses.
“Past performance is a better indicator of future performance” and “past performance is no indicator of future performance”.
Now I can assume what the author is trying to get at, but with ironic statements like that going out to the public around Kiwi Saver how can the average person make a sensible choice.

In New Zealand, a big deal is being made about Kiwisaver… If looking at this from overseas, or if in New Zealand and living under a rock, Kiwisaver is a national retirement scheme that is being introduced from 01/07/07. It involves money directed from peoples pay into a personal retirement account and has a few incentives to get people to join. Most of the incentives were introduced only a month or so ago.

Now in general, the whole thing is an OK idea and the public is being encouraged to sign up by the government and the fund providers. But, is it the right thing for everyone?