The Wall St Journal says KiwiSaver is a lemon. Here the NCPA identifies why;
More worryingly, KiwiSaver does little to address the root cause of New Zealanders' atrocious savings habits; namely, the country's generous welfare system:
* Today, Wellington guarantees 65 percent of the national average wage upon retirement at age 65.
* These payments aren't income or asset tested, meaning everyone receives the same treatment, regardless of wealth.
Observers ask: Why would New Zealanders save today if the government will look after them in their old age?
And, in the meantime, why should New Zealanders earn too much and accumulate assets when they'll lose their state benefits or be forced to start paying child support or paying back their student loans?
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