Q I have been in KiwiSaver since I started my current job five years ago. I have been pleased with the way it's growing, but it sounds like there's going to be some changes after the election. Why do they keep changing the rules?
A There is a public perception that "the Government keeps changing the rules".
I hear this most often from people who have not yet joined KiwiSaver, who use it as a reason not to join. Despite this perception of frequent change, KiwiSaver has changed very little since it started in July 2007.
KiwiSaver is governed by the KiwiSaver Act 2006 and changes are not made lightly. Arguably the biggest change since inception was the reduction of the annual Member Tax Credit from $1042 to $521 in 2011. If anything, that is a reason for people who have not yet joined to get a move on, so that they can at least get some Member Tax Credits while they are still on offer. For those aged 18 to 65, all you have to do is contribute $1042 into your account over the year, and the Government will top it up by $521. So far none of the political parties are threatening to reduce it further, so make the most of it while you can.
The other changes we have seen have been relatively minor. There was always an intention to gradually increase the rate of contributions, introduce employer contributions and help new home buyers with KiwiSaver. While some of the rules around the latter have changed the overriding principles have not.