Is KiwiSaver a SCAM?

At Super-Advice we are about all things financial, but more importantly, helping people understand so they can get ahead financially.

In today’s blog post we debunk some myths and comments about KiwiSaver being a scam.

Is KiwiSaver really a scam?

We’ve talked about this before and the reason we are bringing it up again is very recently we did a piece of content around the perils of having your Kiwi Saver stuck in a default fund, and we had a lot of comments come back on our social media, in particular, TikTok, and a lot of comments were similar.

Pretty much Kiwi Savers is a scam!

The government’s ripping you off!

Kiwi Saver is no good!

I’m not a KiwiSaver, and I’m better off for it!

How and why was KiwiSaver developed?

KiwiSaver was developed by the government about 13 years ago because New Zealanders are terrible savers in general.

Meaning there are some good savers, there are some okay savers, but there is a massive pile of bad savers.

You probably know when you turn 65, if you’ve been paying taxes for long enough (10 years) you can get a government pension until you die.

The thing is It’s not a hell of a lot of money and there are a lot of people coming through into that age bracket.

More and more the government realises they can’t afford to keep paying all this money.
So they had to encourage people to save their own money,

Who chips in?

The best way to help people save money is to rope in the bosses, bring in all the employers and say, Guess what?

Bosses, you’re gonna have to contribute to employee superannuation. We’re gonna give it a fancy marketing name and call it KiwiSaver. We’re gonna make the employees pay a minimum of 3%. We’re gonna make the employers or the bosses pay 3% and the governments gonna chip in as well and put in an extra $500 or so every year.

So is it a scam?

It is not a scam. It is a wonderful plan. If you’re not in it, you should. Because there’s nowhere else you can make money like that.

But is it a scam? No way. Is it a fantastic plan where you can earn money! Absolutely! And you get free money from the boss. Not a scam. In fact, the only people that would generally say that, are people that are maybe not in it and are jealous that you are accumulating lots of money for your retirement.

KiwiSaver’s not a scam, it’s an absolute plan.

That’s a wrap

So what do you think? Did you learn something new today? We love educating and helping people learn all about insurance and finances.

If you need any financial help or advice please get in touch with us at Super-Advice.

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