KS members say dollar fee information is useful

16 August 2018

The vast majority (86%) of KiwiSaver members who saw their fees in dollar amounts in their annual statements this year rated the information as “quite or very useful”, an FMA survey has found. Members rated their current balance as the most useful information on the statement.

This year, for the first time, providers have had to display the fees a member paid in dollar amounts in the annual member statement.

While 50% did not notice the new fee information, among the 31% of respondents who did, 53% said they thought the fees were about right, 30% thought they were too high and 4% thought they were too low. 18% of those surveyed were unsure if they’d seen the new fee information or not.

Where members thought the fees were too high, around a third said they are considering changing their scheme or provider. The main way KiwiSaver members are assessing value for money is by checking their balance and comparing it with other schemes. However, almost four in ten KiwiSaver members were not using any information or tools to assess value for money.

78% of KiwiSavers polled had read their statements and 20% of them had read the statement thoroughly. The percentage of members who said they did not intend to read their statement also fell against a similar survey in 2016, while more members are checking their KiwiSaver is on track to produce the income they are planning for in retirement.

Liam Mason, FMA Director of Regulation said, “Readership of the statements remains high, and for many there was real value in understanding how much they’re paying in fees for their KiwiSaver. The information also prompted people to use comparison tools and consider shopping around for better value.

While this is all positive, the number of people who didn’t see the fees information shows there is further work to do to encourage people to look at their statement thoroughly. I’d encourage everyone to check their statement to review their KiwiSaver.”

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