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


KiwiSaver Statements Starting To Help Members Take Action

A third of KiwiSaver members who read their annual statement this year recalled seeing their projected retirement lump sum, a Financial Markets Authority (FMA) survey has found.

This year, for the first time, members’ statements included an estimated projection of how much money their KiwiSaver investments could provide at age 65, and what this would amount to as a weekly income.

Of the 34% who recalled seeing their projected lump sum 63% of them planned to take some form of action. The most common planned action was increasing contributions.

Gillian Boyes, FMA Manager – Investor Capability, said the FMA, along with the CFFC and the Government, had promoted the inclusion of projected retirement income to help prompt awareness and positive action from investors.

“It’s encouraging to see the new projection figures are starting to prompt members to act. Over half of those intending to make a change understand that increasing contributions will make the biggest difference to their balance,” she said.

Most of these members who saw the projected sum (62%) said they thought it was around, or more than, what they were expecting. However when asked if the weekly retirement income figure would be enough to live on, only 28% said yes.

The proportion of surveyed members who noticed the fees in their statements this year increased to 55%, significantly more than 31% in the previous survey in 2018. Fees were first shown in dollar amounts in 2018.

The FMA has consistently focused on the importance of understanding the impact of fees, both pushing investors to become more price-sensitive, and pressing providers to demonstrate the value they offer to members.

Members’ responses to fees were largely consistent with 2018, with 54% saying fees were ‘about right’ and 32% saying ‘too high’.

Ms Boyes said the increasing awareness of fees this year shows it takes time for these improvements in disclosure to bed in. “No doubt this year, the fees would also have stood out against the drop in investment returns. However, the improvements to the statements introduced over the last few years, and the increasing attention KiwiSavers are paying to the fees, shows these statements are having an impact. We need to keep pushing and prompting, along with the providers, to maintain people’s focus on their KiwiSaver settings.”

Keeping up contributions a priority
Despite market volatility as a result of COVID-19, 62% of members agreed that continuing contributions was a priority, with only 11% disagreeing.

Overall readership of KiwiSaver annual statements was consistent with 2016 and 2018 surveys, with three-quarters (76%) of surveyed members reading their statements. Those who have not yet read their statement, but intend to, were more likely to be aged 18-24.

© Scoop Media

Business Headlines | Sci-Tech Headlines


Auckland Transport: Successful Bridge Repair Opens Two Additional Lanes To Traffic

The opening of two additional lanes on the Auckland Harbour Bridge this morning will help relieve some motorway congestion for motorists heading home to the North Shore tonight. More>>


Statistics New Zealand: COVID-19 Sees Record 12.2 Percent Fall In New Zealand’s Economy

Gross domestic product (GDP) fell by 12.2 percent in the June 2020 quarter, the largest quarterly fall recorded since the current series began in 1987, as the COVID-19 restrictions in place through the quarter impacted economic activity, Stats NZ said ... More>>


Climate: Scientists Release ‘Blueprint’ To Save Critical Ecosystems And Stabilize The Earth’s Climate

A group of scientists and experts produced the first comprehensive global-scale analysis of terrestrial areas essential for biodiversity and climate resilience, totaling 50.4% of the Earth's land. The report was published in Science Advances ... More>>


MPI: Independent Review Launched Into Assurances For Safe Transport Of Livestock By Sea

The Ministry for Primary Industries (MPI) has launched an independent review of the assurances it receives for the safe transport of livestock by sea. MPI Director-General Ray Smith says Mike Heron QC has been appointed to lead the review, which is expected ... More>>


Computers: New Zealand PC Market Grows Nearly 40% Due To Work From Home Demand

COVID-19 had large impacts on demand for PCs as businesses prepared for lockdowns by purchasing notebooks to mobilise their workforce. In the second quarter of 2020, New Zealand's Traditional PC market experienced a 39.7% year-on-year (YoY) growth ... More>>


University Of Auckland: Whale-Watching By Satellite – Follow Their Travels Online

Scientists have successfully attached satellite tracking tags to six New Zealand southern right whales, or tohorā, and are inviting the public to follow the whales’ travels online. Part of a major research project involving the University of Auckland ... More>>

Commerce Commission: Kiwibank Admits System Failures And Agrees To Pay Customers $5.2 Million

Kiwibank has entered into a settlement agreement with the Commerce Commission after reporting that it failed to have in place robust home loan variation disclosure policies, procedures and systems. In a settlement dated 27 August 2020, Kiwibank admitted that ... More>>

Ministry of Health: Public Transport Distancing Requirements Relaxed

Physical distancing requirements on public transport have been reviewed by the Ministry of Health to determine whether they are still required at Alert Level 2 (or below). The Ministry’s assessment is that mandatory face covering and individuals tracking ... More>>


NZHIA: New Zealand Hemp Industry Set To Generate $2 Billion Per Annum And Create 20,000 Jobs

A new report says a fully enabled hemp industry could generate $2 billion in income for New Zealand by 2030, while also creating thousands of new jobs. Written by industry strategist Dr Nick Marsh, the report has prompted calls from the New Zealand Hemp ... More>>


Stats NZ: One In 14 Employed People Report High Risk Of Losing Jobs

About one in 14 workers say they expect to lose their job or business by mid-2021, Stats NZ said today. A survey of employed people in the June 2020 quarter showed 7 percent felt there was a high or almost certain chance of losing their job or business ... More>>

ASB Quarterly Economic Forecast: NZ Economy Doing Better Than Expected, But Challenges Remain

August lockdown estimated to have shaved 8% off NZ’s weekly GDP, and 0.5% off annual GDP Economy now expected to shrink 5% (year-on-year) by end of 2020 Unemployment rate now expected to peak at 7.2% The latest ASB Quarterly Economic Forecast is less ... More>>