Government 'pussy footing' over Kiwi Saver

EUFAs concerns over KiwiSaver were foolishly ignored by Government in 2007.



A report today that KiwiSaver is a “safe bet” is to be feared. “Bet” relates to gambling, which is what investors are currently doing, unknowingly, when they invest their savings in KiwiSaver. The powers that be and associated parties are, once again, ducking for cover, now defending KiwiSaver, which can’t be defended when so many serious issues are arising.



Good products are available to KiwiSaver but the flaws in the system stop it from being safe. It is these same flaws and the same ignorance that has allowed many New Zealanders to be devastated by the loss of their savings. The peoples evidence is being arrogantly dismissed and brushed off by Government, Authorities, Industry Associates and the ill informed.



In late 2007 EUFA, on several occasions, warned the Government over the risks of KiwiSaver and the lack of protection for investors. .



Until the Government, Authorities and the finance industry can provide investor protection of peoples savings, those who have been getting away with taking liberties with client funds, will continue to do so. There is no true deterrent at any level, from Investment companies down to the financial advisors.



Following the Consumers mystery shopper report on financial advisors, EUFA expected the Government would take immediate action against the industry players to ensure KiwiSaver was watertight.



AMP was part of the mystery shopper programme carried out by the Consumer organisation with the report claiming the advice by AMP was "disappointing." AMP remains a default KiwiSaver provider even though the Government are fully aware of the report and the many unresolved disputes over advice given by their advisors.



Coordinator of EUFA, Suzanne Edmonds said from Tauranga today “We wonder when we will see a courageous Government that will stand up and punish the perpetrators in this industry who gamble with other people’s money and lives.”



Tax payers, must demand an inquiry into the KiwiSaver programme to ensure it is a solid retirement scheme before further rot sets in.