KEY POINTS:
Economist Gareth Morgan is calling on the Government to show stronger leadership on KiwiSaver.
Dr Morgan's latest criticism of the scheme is that too many specialist fund managers are being approved as KiwiSaver providers.
Dr Morgan said it was hypocritical of the Government to on one hand call for Kiwis to save more, while on the other hand have no regard for those enticed to gamble savings in specialist, single sector funds.
"It's just a dereliction of care to allow funds that take narrow bets on things like a few Kiwi small cap stocks or a couple of properties, to be allowed to suck Kiwis into thinking they'll get a better retirement if they take that chance.
"Why the hell don't we just buy them some Lotto tickets or a few free nights at Sky Casino?"
He said online calculators were promising exaggerated rates of return from taking punts in a few Kiwi stocks.
"I suggest the TAB would be safer."
He said people need to know there is no government guarantee despite all the government encouragement for KiwiSaver.
If people don't invest in diversified portfolios they were taking a punt with their long term savings.
"All the tax breaks in the world won't prevent you losing all you've saved," he said.
- NZPA
