Budget change a headache for providers

The Government announced in its Budget this year that it would no longer offer the kickstart, effective immediately.

It gave providers less than two months to update their marketing material and other documentation to reflect the changes.

Brian Henry, managing director of Amanah Ethical, which operates a KiwiSaver fund that operates according to Islamic principles, said it was a sad day for KiwiSaver.

He said all providers had been affected. “We’re all in the same boat, everyone has had to change their documentation. It’s a huge change. I know from talking to the other providers that having that $1000, if you’re 16, 17, 18 deciding two opt in or keep the 3% in your pay packet, the $1000 is the thing that makes up their minds…. the whole purpose of the scheme is a little bit undermined.”