Dissatisfaction With KiwiSaver Is Rife
Consumer New Zealand have produced their latest KiwiSaver satisfaction ratings and it’s sobering reading for nearly all New Zealand KiwiSaver providers.
On average, only 48% of Kiwis are satisfied with their KiwiSaver provider, down from 52% in 2018.
What is driving dissatisfaction
It’s probably not surprising that market performance impacts consumer satisfaction. With recent volatility many Kiwi’s have seen drops of over 10% in their portfolio. This is however a trend across the market and few funds have escaped unscathed. With the NZX-50 having recently cracked the 10,000 mark, setting a new record and doubling in almost five years chances are some of this dissatisfaction will likely disappear as returns recover.
But this isn’t just a story about returns. Driving dissatisfaction is the quality of information and process by which consumers learn about their funds with some rather worrying statistics:
Almost 75% of Kiwis do not know the level of fees they pay in their KiwiSaver fund
Almost 66% do not know how their fund compared to the rest of the market
44% are not confident KiwiSaver funds will be enough to support their retirement
45% do not feel their provider helps them keep up to date with their investment
FoxPlan can provide clarity
Fees and Performance
The Financial Markets Authority (FMA) provide an Interactive KiwiSaver Tracker which can be accessed here. This tool allows comparison of funds on performance and provides a simple visual aid to see the proportion of return paid as fees.
Retirement
We agree with the 44% of Kiwis that do not think their funds will be enough to support their retirement. KiwiSaver alone is not a strong enough retirement strategy and should instead act as a safeguard if your other retirement investments (whether they be savings, shares or property) fail to perform. If you do not have any of these other investments in place, we strongly recommend speaking to a financial adviser.
Keeping up to date
A quarterly update from your provider is a minimum. At FoxPlan we recommend you go further and meet with your adviser as required to review your KiwiSaver. Whether it’s to review your options for withdrawal towards a first home or choose a long-term growth strategy, our KiwiSaver difference is we can provide advice face-to-face with no appointment cost to you.
If you’re dissatisfied with your KiwiSaver, drop Dean Blair a line for a chat today and lets work together.