Save – it’s for your own good

There’s plenty going on in the political scene at the moment. There’s all the alcohol reforms (which I really don’t care about, given how much I drink and my age), tighter rules for the adventure tourism industry, and the talk about our abysmal savings rate and murmurings of compulsory superannuation.

While I personally think that the choice should remain ours, I believe you’re a fool if you’re not in Kiwisaver. I realise everybody’s situation is different, but I think most people can manage the minimum 2 per cent, especially if it’s taken out before you get your paycheck.

How can you not want to have the option to retire some day? I don’t doubt couples can survive on $24k NZ Super a year, but if you want to travel or basically enjoy anything but the basics, or don’t own your home outright, it’s going to be a pretty austere existence. And who’s to say Super will still be around for us in our old age? 40 years is a long time and many government terms away.

I know a couple of retirement age who still rent, run their own business and work crazy hours, getting up before dawn. And hey, if that’s what you want to do, that’s great. But they’ve worked hard all their lives, and I don’t think it is. Wouldn’t it be nice to not be bound by the need to continue earn a living?

I’m grateful that my own parents – as far as I know – are fairly secure. Because since I started taking an interest in personal finance, I’ve heard WAY too many horror stories of family bailouts, obligations and – worst of all – taking in ageing parents who have nowhere else to live.

5 thoughts on “Save – it’s for your own good

  • Reply Maggie September 5, 2010 at 00:44

    Although I do think that this is a good idea and the attractive benefits such as after being in it for 5 years, getting $5000 kickstart/contribution in getting your first home, bf did mention something interesting…. or something that he believed in which it was the govt needing more money to spend and so therefore kiwisaver was born… hmmm.

    • Reply eemusings September 5, 2010 at 13:26

      Err, the government isn’t getting any benefit from this. They’re actually GIVING you money – the kickstart and the ‘credits’ to the tune of a grand a year.

      It’s invested into private (not sure if that’s the right word, but has nothing to do with the state) funds, that you choose. It’s just the same as if you invested into a managed fund on your own, except you’re not getting the benefits of employer and govt contributions.

  • Reply Amber from Girl with the Red Hair September 5, 2010 at 07:35

    I feel the same way. So many of my friends are SO stupid with their money. Will they ever learn? Hopefully one day!!

  • Reply Serendipity September 5, 2010 at 09:08

    That’s how I feel about my father. He hasn’t invested as much as he should and constantly cashes in his 401K whenever he needs extra money. Although I doubt I would need to take him in during his twlight years, as he will be working until the day he dies, it makes me sad that he’s 44 and now nearly as prepared as he should be. For myself, I’m finding it much easier to save money then I ever used to. It makes me feel good about myself.

  • Reply findingserenity2010 September 5, 2010 at 10:01

    You’re not alone. And your country is not alone, either. I think a major problem with Americans is that when they get money, they think they should spend it and enjoy it now. And if they don’t have it, they want to get it. More things. More credit. More debt. Though I’m happy to say that, for the first time in 10 years, consumer debt has gone down in this country. If only our national debt was going down …

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