An economist says people should be looking beyond real estate for places to invest.

The Interim Retirement Commissioner is recommending extending KiwiSaver first home withdrawal rules to include investment properties.

Under the proposed changes, the buyer would no longer have to live in the property they purchase.

Former Associate Minister of Finance Peter Neilson told Mike Hosking there needs to be investment in fast-growing companies in New Zealand.

He says investment should focus on something that pushes up the value of wages.

"KiwiSaver members only have to live the property for the first six months - so people are probably already using them as investment properties.

"Options like proposals for equity share plans and rent to buy are more productive."

LISTEN TO THE INTERVIEW ABOVE