For Release: 1 October 2014
ANZ Investments Welcomes KiwiSaver Report
ANZ Investments today endorsed comments by the Financial Markets Authority (FMA) about the need to ensure KiwiSaver members were well-informed so they could make the right decisions when transferring their KiwiSaver savings.
ANZ Wealth New Zealand managing director John Body said the FMA had highlighted an increase in the number of people switching their money to different KiwiSaver schemes.
“We were surprised to see the amount of transfers occurring between KiwiSaver schemes, and in our view, this is too high,” said Mr Body.
“The key thing is that KiwiSaver members are transferring for the right reasons and that they have good information and advice to help them make choices when changing providers or funds. Recent research undertaken indicates the top three
features that New Zealanders value in a provider are a good reputation, knowing that their investment is in safe hands and good returns.
“In particular, it’s vital that members focus on the investment returns, once fees have been deducted, of different KiwiSaver funds – this is fundamental, and one of the biggest influencers to helping people save enough for a comfortable retirement.”
Mr Body said it was important that members knew they could trust their provider and that they received quality and easy to understand information about their investment and how to maximise their retirement savings potential.
“It is concerning that 47% of KiwiSaver funds are still in low risk, conservative or cash funds and we encourage KiwiSavers to review whether they are in the right fund.
“Ensuring you are in the right KiwiSaver fund can make a big difference in achieving your retirement savings goals so it is vital that people get good quality information and advice based on their individual circumstances.
“There are plenty of options including talking to an Authorised Financial Adviser or using the online tools available, including on the Government’s sorted website as well as ANZ’s own FutureWise site,” Mr Body said.