Martin Hawes is right on to it, re an annuity or lump sum component for Kiwi Saver monies. It’s the missing ingredient at present in the Kiwi Saver scheme, and Martins suggestion is echoed across the Tasman, as our Australian counterparts receive large lump sums, and the critics are saying in Australia , this was never the intention of long term retirement savings schemes. Let’s not repeat the Aussie mistake!

Alec Waugh

OPINION: Retirement means a big change: In retirement you can no longer comfortably expect your salary to hit your bank account neatly every second Thursday. Instead, you have to find a way to get steady and reliable income from the invested capital you have.

The stakes are high – one big investment mistake means that you do not eat (not very well at any rate). Yes, you will still have NZ Super. But that is a fairly measly amount to live on. Most people are dependent on their investments for a part of their income in retirement.

Read Martin Hawes’ full ‘Stuff’ Article Here