Customer satisfaction with KiwiSaver providers declines

by Krizzel Canlas23 Apr 2019

Customer satisfaction with KiwiSaver providers has dropped, according to the latest survey from Consumer NZ.

Almost all of the 13 KiwiSaver providers rated in the survey saw their customer satisfaction ratings fall, according to Consumer NZ chief executive Sue Chetwin.

Satisfaction scores for three of the biggest providers – AMP, ANZ and ASB – were significantly below the industry average. Only 36 % of ASB customers were very satisfied, 37% from AMP and 41% from ANZ. Only Milford and Westpac achieved satisfaction scores above 60%, with both getting a rating of 66%. However Westpac KiwiSaver scheme rated below average for keeping customers up-to-date about their investments.

“Overall, 48% of KiwiSavers were happy with the service they were getting from their provider, down from 52% last year,” Chetwin said. She suggested the fall in ratings was likely influenced by sharemarket volatility – which had led to a bumpy 12 months for some funds.

The study also revealed just 45% of respondents thought their provider did a good job keeping them up-to-date about their investment.

Read more: AMP to exclude direct investments in gun manufacturers

“For many, returns are just as important as knowing their money is invested responsibly,” Chetwin said.  “The majority said they’d be concerned if their cash was being invested in stocks such as gambling, pornography and weapons, but didn’t know whether their fund manager excluded investment in these areas.”

“Demand for responsible investment is growing rapidly, but KiwiSaver providers aren’t meeting this demand,” she added.

Other key findings of survey include: 75% didn’t know what they paid in fees each year; 66% didn’t know how their fund performed relative to the rest of the market; and 44% weren’t confident their KiwiSaver funds would be enough to support them in retirement.

 

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