Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Kiwis know how much to save but think they aren't on track

• A clear majority, some 58% of respondents think they need to save more for retirement

• 46% of people think they should save more than 10% of their income, but only 22% of people are doing so

• The KiwiSaver index rose 1% in Q1, 2019 from 22% to 23%

Almost half of New Zealanders responding to the latest ASB KiwiSaver Survey think they should be saving more than 10% of their income to fund their retirement but only 22% are actually saving this much according to the latest survey.

ASB head of KiwiSaver Aidan Vince says, “We have regularly asked if people are saving enough, and this survey as well as earlier findings show the majority of people don’t think they are on track. In the latest survey we asked some more specific questions in order to understand how people come up with their savings goals, and identify areas where people need some help,” says Vince.

The survey showed although just 22% of people were saving more than 10% of their income, 46% thought they should be saving this much. A further 16% and 18% respectively said they did not know how much they were saving, and how much they should be saving.

“It’s fantastic to see that 22% of respondents are saving more than 10% of their income. This is a really good amount to aim for, and it’s also pleasing to see that a significant number of people know this is a good target. However, there are a lot of people that are falling short of their desired rate of saving, and a clear challenge for the industry is to help people achieve their savings goals. The recent changes to KiwiSaver, which allow people to select higher contribution rates is a good start,” says Vince.

“The good news is, a lot of people could be saving more than they think they are – 30% of people said they were saving between 3% and 5% of their income, however if they are putting the minimum of 3% into KiwiSaver that automatically means they are saving closer to 6% with employer contributions,” says Vince.

Of those surveyed, 58% said they needed to save more for retirement, with 50% saying they thought they would need up to $50,000 per year of retirement. When respondents were asked how they came to their figure, 15% said they used online tools, while 14% based their views on advice from family and friends. A further 11% said they formed their own estimate, while the same proportion (11%) formed their opinion from information from media. Around 8% received advice from a bank, and 7% from a financial planner.

“While it’s good that some people have thought about this, a lot of the really solid advice and information that’s available appears to be untapped by the vast majority of investors in KiwiSaver,” says Vince.

“So the key message for these people that don’t know how much they’re saving or don’t know how much to save, is to call a KiwiSaver provider or talk to a financial adviser, because they can help with both of those questions. Discussing the latest KiwiSaver changes to see what rate suits you is a great place to start to see whether you are on track or could save more,” says Vince.

Research from the first quarter of 2019 showed the KiwiSaver index, measuring respondents’ knowledge and understanding of KiwiSaver, had risen marginally from 22% to 23%. Vince says although this confidence level bounced back slightly, it is still far too low.

“Weak sharemarkets over 2018 contributed to people feeling unconfident in how things like KiwiSaver work, in part because it can be alarming to see your KiwiSaver value decline. In contrast, when the sharemarkets are going well like they have been in 2019, and KiwiSaver values are on the rise, people seem to feel a bit more confident. But this is just part of investing; the big problem is the majority of people have a lot of uncertainty about retirement savings in general. So for both KiwiSavers, and KiwiSaver Scheme managers, there is still plenty of work to do in order to get everyones’ retirement savings on track,” says Vince.

@ASBBank @ASBMarkets www.asb.co.nz


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Energy Sector: Meridian Spilled Water To Hike Electricity Prices - Authority Ruling

The Electricity Authority has found that generator Meridian Energy manipulated the power market, costing consumers about $80 million. More>>

ALSO:

XE Data Update: RBNZ Official Cash Rate Decision

The RBNZ will keep the Official Cash Rate (OCR) at 0.25%. T he key points in the RBNZ statement are: RBNZ keeps the OCR unchanged at 0.25% Maintain the LSAP (large scale asset purchase) at NZD$60 billion. Committee prepared to use additional monetary ... More>>

ALSO:

Electricity: Kiwis Ignore Promise Of Cheaper Power

Electric Kiwi and Flick Electric Co are joint winners of Canstar Blue’s award for Most Satisfied Customers | Electricity Providers From putting on an extra layer – rather than turning on a heater – to turning off lights and choosing the energy-saving ... More>>

ALSO:

Economy: COVID-19 Contributes To 1.6 Percent Fall In March Quarter GDP

Gross domestic product (GDP) fell 1.6 percent in the March 2020 quarter, the largest drop in 29 years, as the initial effects of COVID-19 restrictions impacted on economic activity, Stats NZ said today. This quarter’s GDP results showed a widespread drop ... More>>

ALSO:


Electricity: Transmission Pricing For A Low Carbon Future

The Electricity Authority has decided on new guidelines for transmission pricing. James Stevenson-Wallace, Chief Executive of the Electricity Authority says the new guidelines will deliver significant benefits to consumers, through lower electricity ... More>>

ALSO:

ASB: Investor Confidence Falls To Four-Year Low

As the world grapples with the fallout from the most significant pandemic the world has seen in a century, economic concerns are weighing on investors, dragging investor confidence down to a four-year low in the first quarter of the year. For the three ... More>>

ALSO:

Science Media Centre: Funding For R&D In New Zealand – Expert Reaction

Research, Science and Innovation Minister Dr Megan Woods has today announced $401.3 million funding for research and development through Budget 2020 and the COVID Response and Recovery Fund. The fund includes $150 million for an R&D loan scheme, ... More>>

ALSO:


Science: 2019 Prime Minister’s Science Prizes Announced

The 2019 Prime Minister’s Science Prizes have been announced in a digital livestream event today. The Prizes recognise the impact of science on New Zealanders’ lives, celebrate the achievements of current scientists and encourage scientists of the ... More>>

ALSO:


RNZ: Fuel, Alcohol Costs To Go Up From Today

The increase today in the taxes on fuel, road user charges and alcohol is being called a tone-deaf move. More>>

ALSO:

Stardome Observatory: Young Kiwi Astro-Photographer Shoots For The Stars

Matariki by Josh Kirkley. The stars are aligning for up-and-coming Auckland-based astro-photographer Josh Kirkley (Kāi Tahu). During lockdown, one of his images was picked up by NASA and shared on the space agency’s Instagram to its 59.2 million ... More>>


DCANZ: Time For EU To Commit To A Level Playing Field For Trade

The Dairy Companies Association of New Zealand (DCANZ) has welcomed New Zealand Trade Minister David Parker’s statement that it is unacceptable for New Zealand exporters to continue facing an ‘unlevel playing field’ in the EU. Details leaked ... More>>

ALSO:

Potatoes New Zealand: Protecting NZ Fries As Part Of PNZ Pandemic Recovery & Transformation Plan

Potatoes New Zealand has met with Minister Faafoi this week to discuss investigating the potential importation of heavily discounted frozen potato chips into New Zealand. With MBIE’s support we are undertaking an investigation to gather evidence of the ... More>>

ALSO:


New Zealand Government: Supporting Kiwi Businesses To Resolve Rent Disputes

The Government will legislate to ensure businesses that suffered as a result of the COVID-19 response will get help to resolve disputes over commercial rent issues, Justice Minister Andrew Little announced today. More>>

ALSO:


Science Media Centre: Understanding 5G Concerns – Expert Q&A


Recent attacks on cell phone towers have brought concerns over the rollout of 5G technology into sharp relief.
While scientific research has consistently shown that the technology does not adversely affect human health, public concerns about its impact have spread around the world, fueled in part by growing misinformation online. The SMC asked experts to comment... More>>

ALSO:


Trade: Record Monthly Surplus As Imports Dive

Imports in April 2020 had their biggest fall since October 2009, resulting in a monthly trade surplus of $1.3 billion, Stats NZ said today. “This is the largest monthly trade surplus on record and the annual goods trade deficit is the lowest ... More>>

ALSO: