KiwiSaver members should be able to use funds for investment properties - Retirement Commissioner

KiwiSaver members should be able to withdraw funds from their account for investment properties, not just first homes, that’s a suggestion being floated by the acting Retirement Commissioner.

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It’s an idea being floated by the Retirement Commissioner. Source: 1 NEWS

It’s part of three-yearly review into retirement income policies.

It comes at a time where home ownership is the lowest its been in 30 years, from 78 per cent in the 1980’s to 55 per cent now.

Only 35 per cent of Maori and 20 per cent of Pasifika own their own homes.

Acting Retirement Commissioner, Peter Cordtz, says it could help reverse that trend.

"It's about giving people the chance to purchase a home, other than where they live, as an investment and get their foot on the ladder,” he said.

Christchurch Budget Services’ David Marra says the idea needs more thought.

“While it moves the wealthier urban people into their own homes, it drives the locals from that community out of those same homes,” he said.

The Government says it’ll wait until recommendations are handed over to it at the end of the year before making any decision.

Public consultation’s open until the end of October.