The requirement for KiwiSaver fees to be shown in dollar figures has received plenty of positive feedback, the Financial Markets Authority (FMA) says.
In the latest survey from FMA, vast majority (86%) of KiwiSaver members who saw their fees in dollar amounts in their annual statements this year rated the information as “quite or very useful.”
It shows members rated their current balance as the most useful information in the statement.
However, the report suggests only 31% of respondents noticed the new fee information. Of these, 53% said they thoughts the fees were about right, 30% thought they were too high and 4% thought they were too low. Half of those surveyed said they didn’t notice the changes while 18% were unsure if they’d seen the new fee information or not.
FMA noted that around a third of the members who thought the fees were too high said they are considering changing their scheme or provider.
Moreover, 78% of KiwiSavers polled had read their statements, and 20% of them had read the statement thoroughly.
“Readership of the statements remains high, and for many there was real value in understanding how much they’re paying in fees for their KiwiSaver,” FMA director of regulation Liam Mason said. “The information also prompted people to use comparison tools and consider shopping around for better value.”
However, Mason said the number of people who didn’t see the fees information shows there is further work to do to encourage people to look at their statement thoroughly.
“I’d encourage everyone to check their statement to review their KiwiSaver,” he said.
Juno KiwiSaver gets WriteMark award for clarity
KiwiSaver law: Mum makes submission for son with Down syndrome