What’s the difference between mysuper and KiwiSaver?

Written by

couple in the sea

What’s the difference between mysuper and KiwiSaver?

MySuper and KiwiSaver are both retirement savings schemes, but they are tailored for different countries and serve distinct purposes. KiwiSaver is New Zealand’s voluntary retirement savings initiative, designed to help Kiwis save for their retirement, and it offers the flexibility for some to use their savings for a first home purchase. In contrast, MySuper is a retirement savings product in Australia, part of the compulsory superannuation system. Most Australian employees are mandated to contribute to their superannuation accounts, and MySuper provides a straightforward, low-cost default superannuation option for those who prefer not to make specific investment choices.

One of the fundamental distinctions between the two schemes lies in their compulsion. KiwiSaver participation is entirely voluntary, with employees having the choice to opt-in and select their contribution rate. On the other hand, the Australian superannuation system, including MySuper, is compulsory for most employees, who have their contributions managed through their employers. This compulsion ensures a broader coverage of retirement savings among Australian workers.

Moreover, KiwiSaver offers a variety of investment options, with multiple providers managing funds that allow individuals to tailor their investments based on their risk tolerance and financial goals. In contrast, MySuper is characterised by a more simplified approach, offering a limited range of investment choices. It serves as a default option for employees who prefer not to actively select a specific superannuation fund, focusing on cost-efficiency and ease of use.

Read More: How KiwiSaver Compares To Australian Superannuation Funds

In terms of regulation, KiwiSaver is overseen by the Financial Markets Authority (FMA) and operates under the KiwiSaver Act 2006 in New Zealand. MySuper, in Australia, is regulated by the Australian Prudential Regulation Authority (APRA) and is governed by the Superannuation Industry (Supervision) Act 1993.

In summary, while both MySuper and KiwiSaver are retirement savings initiatives, they differ in their compulsion, investment options, and regulatory oversight. MySuper is part of Australia’s compulsory superannuation system, providing a simplified default option, while KiwiSaver is a voluntary scheme in New Zealand, offering more flexibility in investment choices and an additional avenue for first-home buying. The rules and regulations associated with these schemes are tailored to the specific needs and preferences of each country.

What's the reason not to get advice on you KiwiSaver account? Let National Capital help.

You may also like

It’s time for your annual KiwiSaver Health Check

The Financial Markets Authority (FMA) recently released a statement reminding Kiwis that now is a good time for your annual

Balancing Your KiwiSaver: Mixing Ethics with Smart Money Moves

Balancing your KiwiSaver ethically and financially involves a lot of consideration to find a middle ground.

Baby Boomers Tapping into KiwiSaver Savings: Implications and Trends

We research what's causing the sudden rise in baby boomers withdrawing their KiwiSaver savings and how this is due to

Can employees opt out of KiwiSaver?

Opt out of KiwiSaver within 2-8 weeks using the KS10 form. Employers assist, late opt-outs may be considered up to

How is KiwiSaver treated in divorce?

Navigate KiwiSaver in NZ divorces. Learn about the 50:50 split, prenuptial options, and valuation for fair asset distribution. Legal guidance

ASB Bank Launches New Aggressive KiwiSaver Fund to Meet Growing Investor Demand

Discover ASB Bank's Aggressive KiwiSaver Fund for high-growth needs. Feeling lost in the investment maze? Navigate with ease using National