kiwi saver

[john legend 744]

happy to say an early oldie (1 week from65)itching to collect govt handout as will have been in 5 years and and reached the set age . from now on there will be a growing number exiting the scheme AND OVER THE NEXT FEW YEARS large amounts will be paid out .The scheme managers write to you as you approach payout with several offers such as regular payments or lump sum etc all very good but also will introduce you to a financial adviser!!! I thought the idea was for all NZrs to have a chance for some retirement savings without the middlemen getting involved and potentially destroying years of diligent effort. put in the bank or buy a racehorse (only joking)

[teletubby 1]

i thought the kiwi saver was the governments(national & labour) way of bringing in a user pay system... you put your money aside in a kiwi saver and when you reach retirement age that is all you get... no government handouts like the pension...although it was made clear some would not be able to contribute to kiwi saver... that is really a myth...

if you are unemployed...you can still claim the $1,000 to set up with kiwi saver... what else you put into it depends if you are able to or not.. say on a unemployment benefit of $400 you choose to 10% that would be $40 (using that figure as example not many benefits really at that amount)5% would be $20 .

of course you don't have to put anything towards it.. and just go on the interest it collects.. but you have to look at wider picture... if your 18 or 20 now you may have something put aside by the time your 70... but if your say 55m by the time your 70 not a lot would be in your savings..so you are still relying on a pension of some sorts..it is my gut feeling that both parties will at sometime over next decade do away with pensions .. which may see an early demise in elderly people...i suggest to my own children save as much as you can even if it means doing without those overseas trips etc.for the next 5 years or so things are going to be tough with this recession...and savings hard for even low income earners..