We can't save for our own individual retirements as per my suggestion, although oddly, many are happy to pay into Kiwisaver. yet when I suggest that, all hell breaks loose
I suspect the framing of the Kiwisaver debate will change given a decent market shock and people see their balances shrink by 20% in a month or similar. Almost none of the 'how much do you need to save' calculators factor in a recession or likely market drop into their long-term forecasts, which is borderline misleading tbh. And if you're a long time away from retirement, that Kiwisaver deduction might as well be a tax. It's almost dead money but not quite - just very abstract income in the sense that you're being taxed on it now but you can't use it for decades.
I would rather be paying that 4% from my salary directly to the Government to use as they see fit rather than being forced to ride the markets by law. Maybe that is the product we are missing from the debate - guaranteed, inflation-adjusted crown-backed annuities to be paid out regardless of means or other income.
I guess we could have a Kiwisaver where its not invested, it is saved and the Govt pays interest. For long termers, you could also use the current KS investment options, but in the last 10 years you go to save with the Govt plan? Removing investing altogether would make it very easy to manage, but probably a lot less lucrative, but at least no shocks at the wrong time in your life