RSM New Zealand

Kiwis read annual statements but fail to follow up

KiwiSaver providers must send out an annual statement to all their members in the three months following the end of the financial year (May-July).

Acknowledgement to the Financial Markets Authority for the preparation of the below statement and findings.  To view the article on the FMA website direct, click here

The results of an FMA survey released today revealed that while 21% of members read their KiwiSaver statement thoroughly and 58% had briefly looked at it, only 23% checked to see how their KiwiSaver was performing.

While it’s great that so many people are reading their statements, we would like to see more Kiwis using them as a prompt to do a quick performance check.

Even a little bit of time spent checking and fine tuning your KiwiSaver account can make a big difference to how much money you’ll have to live on when you’re retired.

The survey results also strongly suggest that additional information on the statements might make it easier for investors to use the document as a decision-making tool:

  • 72% of respondents said they would like to see information about the lump sum they were on course to receive when they retire

  • 62% said they would like to see what weekly income that would give them in retirement

  • 37% said they would like to see the fees they paid in a dollar amount.

The Ministry of Business Innovation and Employment (MBIE) is currently working with the FMA and the Commission for Financial Capability (CFFC) to review the format and content of KiwiSaver annual statements. Together we will consider ways to improve the information provided. The results of our survey will be taken into account as part of this review.

Click on these links to read the FMA's media release and latest research results.

 

3 important questions to ask yourself when you look at your KiwiSaver statement:

  1. Do I know the income I’d like to have in retirement, and how much money I’ll need to achieve that?

  2. Given my current KiwiSaver contributions and the fund I’m invested in, am I on track to hit that number by the time I retire?

  3. If not, what’s in the way - Not putting enough in?  Paying too much in fees? Returns not meeting expectations? Unrealistic goals? Some or all of these?

3 tools to get you started

  1. Use the Sorted KiwiSaver savings calculator to see how big your balance could be, and what weekly income that could provide. 

  2. Use the Sorted KiwiSaver fees calculator to see how the fees you’re paying compare with those charged by other providers. 

  3. Compare different funds using the Sorted KiwiSaver fund finder.

 

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