Recommended changes to KiwiSaver
The Commission for Financial Capability has made 19 suggestions on how to improve KiwiSaver. Mary and Jesse discuss four of them:
- Set up “Small Steps”, so people’s contributions rise gradually each year if they wish
- Add “sidecar savings” to KiwiSaver for short-term emergencies
- Exclude fixed fees from KiwiSaver accounts with balances under $5000
- Show members how much their fees are likely to total over the years in KiwiSaver, compared with average fees for that type of fund
Also: an unusual letter from a listener — grow marijuana or join KiwiSaver?
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Mary Holm is a freelance journalist, a director of Financial Services Complaints Ltd (FSCL), a seminar presenter and a bestselling author on personal finance. From 2011 to 2019 she was a founding director of the Financial Markets Authority. Her opinions are personal, and do not reflect the position of any organisation in which she holds office. Mary’s advice is of a general nature, and she is not responsible for any loss that any reader may suffer from following it.