KiwiSaver Myths during Covid-19
1. The Government is taking my KiwiSaver.
Banks and providers have been inundated with this question and similar. Your KiwiSaver is your personal account, the government can’t take or steal your money. All KiwiSaver funds are held by The Public Trust. In a nutshell, the funds are ring-fenced and very heavily regulated by the Trust and the FMA (Financial Markets Authority).
2. Save what you can, move to a conservative fund now.
Hold your horses! Unless you’re looking at withdrawing your money within the next couple of years, you should most likely be sitting tight. Moving into a conservative fund with plenty of time up your sleeve just means you’re locking in your losses. Every situation is different so be sure to chat to us before making any decisions.
3. If the provider goes bankrupt, I can lose all my money.
The funds are with The Public Trust. If your provider goes bankrupt, your account will simply be allocated to an ‘Accredited Provider’. The provider can’t touch your money to bail themselves out.
4. My KiwiSaver is safer if I keep it with the bank.
To coin KiwiSaver as ‘safe’ or ‘unsafe’ is unhelpful. Rather look at the strength of your provider and fund. Some key things to look at; Are they Government Accredited? How long have they been around for? Do they invest actively or passively? Why are their fees so low?
If you’re unsure about any of this or anything else regarding your KiwiSaver, come and chat with us!
KiwiSaver is a fundamental part of our day to day finances, so now’s a better time than ever to understand it and get ahead with some personalised advice.