By Amanda Morrall
Welcome to interest.co.nz’s dedicated KiwiSaver section, a one-stop shop to find out everything you want to know about KiwiSaver.
This is the place for answers to your queries about how KiwiSaver works, how KiwiSaver funds are performing, how much they are costing and who the fund managers are.
Why come here regularly?
Well for starters, we're independent. We're not trying to sell you any product, or steer you into a particular fund or into the arms of any one provider.
Our aim is to be useful again and again.
What can you find?
We have an extensive and unbiased collection of information, news, 'How To guides' and background about KiwiSaver. See all our KiwiSaver news here.
Our data miners here have produced the most comprehensive, unbiased and detailed databases available on KiwiSaver fund performance and fees. Find more about your fund here.
For example, find all the default funds here.
Our aim is to help you better understand this life-time savings vehicle so you can build your knowledge and learn about the choices.
Why bother?
If you're in the scheme it's worth knowing how your fund is performing and how it compares to others.
If you're about to go into KiwiSaver it's worth finding out what's available and what works best for you.
As financial needs and priorities shift over time, that can change what type of fund is best for you.
We'll provide information and tools to help you and any advisers make those choices.
We think more information and more useful information will help everyone make better choices. A quick piece of advice. We don't give financial. We want to be useful and help you make the decisions.
As always we welcome your feedback, suggestions and comments and invite you to take advantage of these great tools. Enjoy.
Our goal is simply to get you to take an interest in KiwiSaver with interest.co.nz!
And this is just the start.
We'll be building up this section day by day with plenty of useful 'How to' guides, the latest news and the latest views.
23 Comments
Very true. I believe its inevitable that at some point the 'generous' incentives will have to be abandoned as government budgets continue to come under pressure. Folk will then be stuck in schemes where they cant access their investment (which will likely be dwindling anyway) till they are 65 plus.
Manage your own money affairs and prepare to be very, very nimble in where you place your cash.
I took the 'see all the funds here' link, and note from it the Gareth Morgan funds all have a n/a against performance: performance for all the other funds is listed.
Why is this? (I remember Gareth being upset about how funds were measured against each other, but has he disallowed - somehow - his funds being reported on?
There are performance figures available at http://www.gmi.co.nz/Pages/KiwiSaver/Performance.aspx
They're after-tax returns though, so not directly comparable to the table.
Good point, Tribless. Quite a number of the other providers were the same. It doesn't instill a lot of confidence if they don't stump up with their numbers really, does it?
One other thing that I'd be interested to hear about from others is what they think of the 3yr rate of return. For most of the funds it's in negative territory. What do others feel about this? Is Kiwisaver really a good investment or not? Or would it be better to just put money aside at the bank, compound the interest rate and avoid Kiwisaver's fees?
Its only good from the govn handout perspective....IMHO, so paying in enough in the first year to see the Govn max'd handout yes....after that suspend it and pay down debt.
Most of these funds are mis-managed by mediocre managers who guess a lot IMHO....I wouldnt put my money in gambling.......I's buy my own shares, if I thought they all were not over-valued right now....
100% "interest" in the first year makes it worthwhile if you pick a very conservative fund....so losses are minimalised. Putting it in agressive growth funds is nutty right now IMHO.
regards
I would put money in Kiwi saver if I could transfer 'my' money from my Australian Super from when I worked there in 2001.
However I gather the Aussies have the advantage of being able to tap into super from age 60, whereas we have to wait till 65.
Aussies can also manage their own super funds and have additional advantages such as franking credits.
Maybe I should move to Australia...... No that would be herd mentality......
Welcome Amanda : And well done , Bernard . This KiwiSaver section is gonna put some meat on the bones of interest.co.nz .......
...... If only I could convince you to create a stockmarket section too . ....... I'd be in Gummy heaven .
[ Been busy Scarfie , picking up my new mango seedlings around town . Met the " citrus smugglers " who've defied the government , and shipped seedlings from island to island . .......... When government idiocy continues long enough , the citizens take matters into their own hands ]
The government (shovernment) have NEVER been in the business of making the 'general' population wealthier so KS is of not interest to me what so ever. I prefer to control my own savings and finances where and whenever possible. In this environment it is so important to be able to act quickly and decisively concerning your money and investments.
Do NOT encourage this highly complicated 'benefit scheme' which is what it is. It will only benefit fund managers and government sanctioned corporate businesses, not the investor at the very end of the day. This is nothing but corporate controlled welfare aim to make THEM a profit.
If your in it, I suggest you leave ASAP. Take control of your own lives people. Anyone who stays in KS will live to regret it.
Its a great site to compare all the schemes out there. I think ks is a great idea and have even signed up my 3 sons to it (they are under 5 and haven't even paid $1000.00 in tax yet and they have been paid a "tax refund" from the government to start it off. All this makes sense to me.
It is a great idea for you and your kids - no question. Not so if you happen to be PAYE and childless however. I guess that's political but for sure, in your shoes work the system! I hate my shoes (and the system)! Hats off to you (begrugingly).
Yours sincerely
Miserable Bugger
So Tranny,
Where do you think the money came from exactly that your 3 have benefited from WITHOUT any social input themselves? See, that's what pisses me off about people like you, Your 'takers', users, your parasites, who use the excuse of having children to steal from others who actually work hard, own businesses and pay taxes which a majority of that tax goes to people like you who can't even support your own decision too breed.
Could you not teach them without a government handout to do the right thing? Weak parenting!
Hold on Justice, you're being a bit unfair here - i understand your point exactly but it wasn't Tranny who determined this system. They are merely taking advantage of it and currently there is no reason why they shouldn't . I promise i hear you loud and clear but Tranny is doing nothing wrong.
You're right, it sucks but if you had three children would you not be utilising the benefits available? I would! Until society places the responsibility of having Children soley on the individuals reaponsible for thier existence (rather than the tax payer) this sort of issue will continue to surface.
Sticking to the Kiwisaver thread however, Tranny is smart. I won't be turning down my next pay rise offer either...Morals and ethics aside, Tranny is playing the game very well. Yep, i hate it too right now (on my moral & ethical high horse) but i'd take it if it was offered to me.
You're best aiming shots at the benefit fraudsters.
Kiwisaver is a great idea. However many private firms (the one i work for is an example) stipulate in the employment contract that a given salary is a final and complete salary inclusive of any provisions to Goverment savings schemes. This mean that any employee's contributions are not matched or added to by a 2% by the firm. So, you don't land an extra bonus for the future. I'd suggets that anybody looking to get into Kiwisaver looks closely at thier employment contract and secondly if they have debt accruing interest, they opt to pay any monies they might have considered directing into Kiwisaver to that debt. Surely it's not smart to be paying 7,8,9 % interest on a mortgage and whilst directing funds to Kiwisaver.
Am I missing something?
I wouldn't call trying to set my children up for their future "weak parenting" but more responsible parenting. Anyway before you pass judgement who to say that I might not be a business person or an employee who has being paying taxes for the last 30 years or so. On top of that have only just now had children once myself and my wife are in a more finanical position to have children. On top of this business owners can also belong to kiwisaver and get most of the benefits that an employee gets. Only joking has a point with people being better off paying off their mortgage instead of directing funds to kiwisaver however from people I've meet through my employment they pay off the mortgage or part of it off and the reborrow to purchase their next car or fund the holiday overseas so they can keep up with the Jones. By the time they are 65 all they have is a mortgage still to pay off and some memories and a clapped out vehicle. Better they pay to kiwisaver and still pay off the mortgage so at 65 they might have something to live off.
Hopefully Justice never meets my wife as she has just read his comments and would be in for a verbal tounge lashing as we are both fully employed and have a small cottage business as well (trying to teach our children that working hard will get you somewhere in life).
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