Analysis: Back in 2019, acting retirement commissioner Peter Cordtz was tasked with the three yearly review of retirement policies. After completing the review, he suggested it might be a good idea to let folks use their KiwiSaver to buy rental properties, not just first homes.
At the time home ownership had declined from about 78 per cent in the 1980s to 55 per cent that year. Cordtz saw this as a worrying trend and a significant issue for older people, almost 12% of whom were renting at the time.
The pension, he noted, was not designed to cover the cost of renting. Perhaps being able to buy an investment property as their first step would help more people into their own homes in the long term?
Almost seven years later, though, KiwiSaver funds are still available to spend only after age 65, when they buying their first home, or under a couple of other strict criteria.
It’s meant to fund retirements, not build property portfolios.
