Five-year KiwiSaver break too long

Members can choose to opt out of their contributions for five years at a time. At the end of that period, they are asked whether they want to roll over on to another contribution holiday. If they do not respond, contributions automatically restart.

Therese Singleton, general manager of investments and insurance at AMP, said one of the things she would most like to change about the retirement savings scheme was the length of that contributions holiday.

She said people needed to realise the value of continuing contributions.

“The tax credit in itself is more of a return than you’re ever going to get on $1000 anywhere else and that in itself is reason enough to contribute,” she said.