Greater flexibility for KiwiSavers comes at a cost

Posted by Bruce on 1 April 2009

Reducing the minimum KiwiSaver employee contribution from 4% to 2% provides some welcome flexibility for KiwiSavers and their employers, but comes at a cost that may ultimately detract from the end savings outcome.

That's according to the Association of Superannuation Funds of New Zealand (ASFONZ) which promotes workplace savings.

The changes take effect from 1 April.

ASFONZ Chair David Ireland says reducing the minimum member contribution rate to 2% is generally regarded as a positive step that makes KiwiSaver more affordable for workers to both join up and to continue saving; more...