Another issue I have against kiwisaver is the wording which does not go as far to say you will have access to the funds at age 65, rather it says something like NZ retirement age which is currently 65. I imagine in 30 or 40 years time that will at least be well into the 70's.
Even the housing supplement has lost its appeal for me given that your purchase must be in the lower quartile of your chosen area and you must be earning less than 100k. Given that most of the boys in the jet fleet will be pushing that sooner rather than later voids this entitlement, it also discourages one from saving up for an average priced house should they so choose.
The only benefit I can see with kiwisaver is the tax breaks and correct me if im wrong but there is talk from the govt that existing schemes may at somepoint benifit from these tax breaks too?