This article was published on 31 January 2020. Some information may be out of date.

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.