Call for money for kids as part of KiwiSaver 2.0

KiwiSaver is shaping up to be an election issue this year. Both National and NZ First have so far revealed plans to increase what people must contribute, amid concerns about the future financial sustainability of the NZ Super scheme.

Commentators including investor and director Fraser Whineray, former chief executive of Mercury NZ, have said a reallocation of the government contribution could help.

It has been cut to $260 a year for people who contribute at least $1042, provided they earn less than $180,000.

Whineray said every child could have an account opened by Inland Revenue and $5000 invested into a growth fund by the Government on their behalf. With a family contribution of $100 a year tha could give a child a balance of about $20,000 at 18 and 15 times that by 65.