Give us a government guarantee, say KiwiSavers
A week after a survey found many New Zealanders think KiwiSaver is government-guaranteed, another survey has revealed the lack of a guarantee is one of the main concerns people have about the scheme.Last week a UMR Research poll found that nearly half (48
Niko Kloeten
Thu, 18 Mar 2010
A week after a survey found many New Zealanders think KiwiSaver is government-guaranteed, another survey has revealed the lack of a guarantee is one of the main concerns people have about the scheme.
Last week a UMR Research poll found that nearly half (48%) of people in KiwiSaver thought their fund was government-guaranteed and 35% were unsure.
But Mercer’s KiwiSaver Sentiment Study has found that the lack of a guarantee is one of the major concerns about KiwiSaver.
Other concerns centred on a lack of understanding of the scheme, poor returns and a preference for greater control over personal finances.
Martin Lewington, head of Mercer New Zealand, said expecting some form of guarantee over KiwiSaver funds was unrealistic.
“We always say if you want a government guarantee go and invest in government bonds – but as Greece shows even that may not be completely safe.”
The survey found a rise in people expecting life in retirement to be less comfortable than it is today, up to 49% compared to 42% when Mercer did the survey in 2007 just before KiwiSaver was introduced.
It found that about half (49%) of people were happy with their current KiwiSaver provider and only 5% were looking to change schemes within 12 months,
National’s introduction of a 2% contribution level has proven popular; 29% indicated they either plan to make or already make contributions at the 2% level, while 46% plan to do so at the 4% level.
“The economic events of the last two years have provided a reality check for many New Zealanders in terms of how prepared they are for retirement,” Mr Lewington said.
“By the same token, these events along with the introduction of KiwiSaver have also prompted Kiwis to become more astute and engaged with their retirement planning.”
Niko Kloeten
Thu, 18 Mar 2010
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