A.         No, a KiwiSaver account can only be owned by one person, it cannot be owned jointly with someone else. 

 

While it may seem cumbersome to manage two KiwiSaver accounts, there are advantages. If you are with two different fund managers, you will get a different investment style and while one manager may underperform the other may excel. For example, one manager may be active while the other may be passive. You could also use one KiwiSaver account for withdrawals, selecting a lower risk fund with less chance of a sharp drop in value, leaving the other KiwiSaver fund in somewhat higher risk strategy to grow over the next 10 to 20 years. 

 

How much do you plan to withdraw? Currently, a couple over 65 receives $564 per week from NZ Super, after tax at M rate. If you want $100 a week from your KiwiSaver, at a 4% net return your $100,000 in KiwiSaver will last over 30 years, so some of it should be treated as a longer term investment. If you plan to withdraw $200 or $150 per week, it will last for 12 to 18 years at a 4% net return per annum so you should adjust your expectations and your risk setting accordingly. 

 

There are other good reasons for KiwiSaver to be individually owned. The largest number of people in KiwiSaver are in the 25-34 age group, who in the past are unlikely to have had investments other than a car and a home (with a mortgage) at that stage in their lives. KiwiSaver is teaching this younger generation about investing, and the benefits of saving. As fund balances grow, people will gain confidence from knowing that they have an asset in their own name, not shared with a partner in a relationship that may or may not work out. KiwiSaver is difficult to access and this will also benefit many people who find it hard to say no to family members asking for a hand out. 

 

Having an asset in their own name is particularly empowering for many women who in the past may have shied away from investments. It may be surprising to know that, since KiwiSaver started in 2007, women have outnumbered men as members. Government figures show 1.1 million men and 1.2 million women in KiwiSaver as at 30 June 2014. While women may think that investing is either too boring or too complicated, it is generally believed that they do a better job as they are less inclined to make frequent trades and are more patient. They are often more diligent at saving and perhaps less inclined to spend large sums on ‘toys’ such as fast cars, motor bikes or the latest Xbox or iPhone.

 

If you continue with your separate KiwiSaver accounts, and would like your husband to inherit the proceeds of your account when you pass away, all you need is a valid will setting out your wishes (and he can do the same). Your KiwiSaver is treated as any other asset that you own, and your executors will cash it up and pay out the proceeds according to your wishes.