A Treasury analysis of KiwiSaver has put a question mark over how efficient the scheme is - specifically whether it helps the poor or increases national savings.
Michael Littlewood, the co-director of retirement policy and research centre at Auckland University, told TV ONE's Breakfast this morning that KiwiSaver was not needed in the first place.
"There was no real evidence Kiwis were acting irrationally before KiwiSaver started," he said.
Although the household saving rate was negative, Littlewood claims this says "absolutely nothing about New Zealanders' saving habits".
According to Littlewood, New Zealanders were responding rationally and "ending up at retirement with very very little economic hardship".
A money "reshuffling" occurs with KiwiSaver because of all the incentives the Government needs to give for people to opt in, he said.
"The document says the Government is spending more money - for every dollar of saving households are making, the Government is spending more than that."
In comparison to Australia, he said, which enforces a 9% savings rate on income, New Zealanders "by contrast put much more money into their businesses".
Littlewood said his first recommendation would be to get rid of tax incentives.
"The evidence from around the world is that tax incentives do not increase savings," he said.
He also proposes scrapping auto enrolment, "just to see if the behavioural economic stuff works".
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