The Inland Revenue Department will send more than one million letters to people on the wrong tax rate for KiwiSaver this year.

But a financial adviser believes it will take more than letters to get people to change to the right tax rate given many of those paying too much tax are young and may have low levels of financial literacy.

The tax department began sending out letters to people who had not paid enough tax on their KiwiSaver investments in May prompting an outcry from people worried about getting an unexpected tax bill.

In June, the IRD revealed 450,000

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