KiwiSaver or KiwiTaxer? The changes high on adviser wishlists

There remains no real incentive for clients to direct extra contributions into KiwiSaver, so long as New Zealand is still a global outlier in its choice of tax structure around retirement savings, according to one financial advisory firm leader.

With the government in the early stages of considering what the future of KiwiSaver looks like, and whether that means higher minimum contribution rates, tax seems to be the elephant in the room few are talking about, says Become Wealth Chief Executive Joseph Darby.

“When you're at peak earning capacity, you're getting taxed at 33% and 39% and then the investment returns are getting hammered, that's the 28%, so you're kind of stunting the growth.”

“I think that’s a bit of travesty in some ways.”