Building Kiwisaver confidence
Many people feel they don't understand or know enough about Kiwsaver, so they ask others - including their employers - to talk them through it.
There is lots of general information you can give them about KiwiSaver, but there are some rules around what you can and can't say.
You can safely tell your employees what KiwiSaver is, what the features of a particular KiwiSaver scheme are if you have a preferred relationship, and information about what your staff member needs to do to sign up.
But making an outright recommendation or giving an opinion about a financial product is considered financial advice – which only financial advisors are allowed to do.
If your employees want more detailed personal help, the Financial Markets Authority (FMA) has KiwiSaver tools that provide information about how KiwiSaver works and guide them to their next steps.
"We know people really value having someone to talk to about their KiwiSaver settings," says Simone Robbers, Acting Director or External Communications and Investor Capability at the FMA.
"Employers are in the perfect position to help steer their staff onto tools like the FMA Health Checker to make sure they are set up right in the first place."
Investor information about KiwiSaver (external link) — Financial Markets Authority
If you have an employer-chosen Kiwisaver scheme you have to advise new employees in writing that they will be allocated to this scheme unless they choose their own.
Check out the full article here