KiwiSaver may not be at the top of the traditional xmas wish-list but here's why it should.

Unlike other gifts you outgrow, get bored of, give away or hide in the back closet, KiwiSaver keeps on giving.

How?

Your money is safe, protected and invested. You can't touch it, unless until you're buying your first home, or retiring. Most other Christmas gifts will depreciate lose their sparkle and be forgotten about in a month or less. KiwiSaver will sparkle with growth. It's a great legacy gift for a parent or grandparent.

The bonus for recipients over the age of 18  is the $521 in FREE money. That's right, if you gift a minimum of $1,042, on behalf of someone who hasn't already put that amount into their account, the Government rewards you with a bonus of half that. 

Even if that lucky KiwiSaver on your list is too young to qualify for the gravy, an xmas top-up will still leave them better off than the convention xmas collection.

Unbelievably, more than one million people in KiwiSaver turn their back on this free money, and whatever else they've built up in their accounts so far, by ignoring their accounts. They don't do anything with them. They're like abandoned shopping carts except they paid for the trolley and left a wallet with one card in it.  Still, whatever the balance, unless it's zero, the fees keep coming out. Sure the returns tick over but they're nothing compared to returns on the back of regular savings compounding monthly.

I'm sure many KiwiSavers in this camp have justifiable reasons for not contributing but I expect a good number are just in the dark. They either don't realise what they're missing out on, they can't be bothered, or they elect to spend their money on things that do nothing to advance their position. 

Knowledge is money. It's your money. And we want to encourage our members to be more informed in general. 

People make irrational decisions about money all the time. They put things on credit card knowing they can't properly afford to pay for it. They spend more than they earn. They spend money of things that depreciate, rather than grow in value. AND they turn down free money. Go figure.

And that's why KiwiSaver is a great gift for grandparents and or parents who want to do someone they love a good turn.

For those who hate shopping, it's a dream to buy. It takes only a few minutes online via an online banking payment.  You need the recipient's IRD and surname and it goes right into their Simplicity account for investment. Simple. 

When the toys lose their shine in 2017, the KiwiSaver account will be looking shiny and new by comparison. So will the smile on the face of happy KiwiSaver who lands their first home as a result of it too. 

Merry Christmas KiwiSavers. Let it grow. Let it grow. Let it grow.