The Financial Services Council has today released a new report, ‘Shaping Futures: Closing the KiwiSaver Gap’, which sends a clear message to government, industry and consumers that combined action is needed to close the KiwiSaver gap in New Zealand.
The report is based on three significant pieces of research commissioned by the FSC with responses from over 2,100 New Zealanders and carried out by Horizon Research –‘Generation KiwiSaver’, ‘Growing the KiwiSaver Pie’, and ‘Great Expectations – Retirement Realities for Older New Zealanders’.
Read the recommendations and the media release.
The four recommendations are as follows:
- Contributions: Essential changes to enable flexible, controlled and automatic increases in contributions.
- Taking Control: New Zealanders want a clear strategy around the future of KiwiSaver, with a greater focus on leadership and long-term thinking to benefit all.
- Getting the most out of KiwiSaver: The Government needs to review the rules on default fund allocation, incentives (including multiple retirement ages) and centralise hardship evaluations.
- Advice: clearer information is needed, along with making it easier for KiwiSavers to switch to the right provider for them and integration of new technology to improve proactive and transparent advice.
The FSC has also been out on the streets over the past week talking to New Zealanders about KiwiSaver. Although those we spoke to knew that they are able to use KiwiSaver to save for a first home as well as for later life, many found it hard to save enough or take the time to really consider what they might need.
Klipin said, “Managing money is a skill. There are a few rules of thumb to follow to make sure people have enough to enjoy a comfortable retirement:
- Save: 10 to 15% of your income and invest it wisely
- Set goals: think about the future and don’t underestimate the savings you will need
- Skills: with hard work, patience and discipline you will be able to unlock long-term
- financial wellbeing
- Seek advice: manage risk and get the best return on your investment.”
The full report, Shaping Futures: Closing the KiwiSaver Gap, and media release are available.