KiwiSaver worries

Mary answers listeners' worries about KiwiSaver. They include: how to learn the basics of the scheme; whether the government can be trusted not to take the money; whether fees are ripping off children in KiwiSaver and more. KiwiSaver has now been going for about 10 years, but some of the inner workings are still a bit of a mystery to many, and there's further questions about fees, government regulation, kids funds and more.This week, Mary Holm answers questions submitted by our listeners to clear up some of these mysteries and gives some of her valuable advice on how to handle your own savings. Arman asks: "I am so new to KiwiSaver. I keep hearing from friends and also on your show from Mary about it but I really don't know the basic concept of it and how it works."Mary says while most people know the basics, that's not true of everyone. "Good on him for writing this letter and coming back to the very basics. "In the end I think the best website is the Sorted website which is run by the commission for financial capability - partly because it's government funded and it's not put together by a provider. "A lot of the KiwiSaver providers do really good education stuff but it could be biased a bit towards their products She suggests checking out the KiwiSaver basics page. "They've got some basic information. When it all boils down to it though the very basic idea is that you're saving money and the government is also putting money in as well - they put 50 cents for every dollar you put in up to a maximum of $521 from the government for $1045 from you. "Your employer, if you're an employee, also puts in ... you're putting in three percent or higher and they're putting in three percent."Mary says the personal contributions can be set at 3, 4 or 8 percent. "It started out at four or eight, from memory, and so they just sort of came up with those numbers."I think quite a few people were saying 4 percent's too much so they added 3 percent to the mix ... I think it's the retirement commission has been suggesting putting in a six percent as well.""If you are putting in 3 or 4 percent and you'd like to put in more - but not right up to 8 percent - you can directly send any other contributions you like directly to your provider: not doing it through your employer." Andrew asks: How can we trust the govt to not just nick the KiwiSaver funds when they get into deep enough financial trouble?Mary says realistically, the government is never going to take your personal KiwiSaver funds. …Go to this episode on rnz.co.nz for more details