Ignorance breeding complacency for KiwiSavers
Nearly half of all KiwiSaver members wrongly think they have a government guarantee, according to a new survey that raises further concerns about the safety of investors.The UMR Research survey of 750 people found worrying gaps in many people's KiwiSaver
Niko Kloeten
Wed, 10 Mar 2010
Nearly half of all KiwiSaver members wrongly think they have a government guarantee, according to a new survey that raises further concerns about the safety of investors.
The UMR Research survey of 750 people found worrying gaps in many people’s KiwiSaver knowledge.
Slightly more than one third (34%) of the people surveyed said they were KiwiSaver members.
When asked if the KiwiSaver fund they had invested in had a government guarantee, only 15% correctly answered that there was no guarantee while 48% thought their fund was guaranteed and 37% were unsure.
And more than half (56%) of KiwiSaver members surveyed said they do not know that much or hardly anything about the scheme they have invested in.
The survey will likely add further weight to the government’s moves to fast-track regulations increasing the reporting requirements for KiwiSaver providers.
This followed the recent revelation that Huljich Wealth Management had artificially boosted the returns on its KiwiSaver scheme.
The company was forced to amend its investment statement and the Securities Commission is now investigating.
Peter Huljich stepped down as managing director of Huljich Wealth Management last week and was replaced in the role by Don Brash.
Niko Kloeten
Wed, 10 Mar 2010
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