What information should you be passing onto your clients?
A new study has shed light on the things that New Zealanders did not know about their KiwiSaver.
According to the Commission for Financial Capability (CFFC), in its latest survey for the World Investor Week, 28% of those surveyed did not know whether their fund was in the conservative, balanced or growth categories. CFFC said this is equivalent to an estimated 800,000 KiwiSaver members.
CFFC community education manager Peter Cordtz highlighted that many people did not know that KiwiSaver is more than just a savings plan.
“It’s an investment scheme to help you prepare for retirement,” he noted. “If we set and forget it we’re losing out.”
The report revealed 17% of those surveyed didn’t know how much they were contributing to their KiwiSaver each payday – CFFC equates this to nearly 500,000 New Zealanders. Additionally, 12% of KiwiSaver members, do not know how much they have in their accounts.
It also suggests that 10% were not aware the annual government contribution of $521 existed.
“It seems too many of us are passive participants in our preparation for retirement,” Cordtz said. “Life isn’t Lotto – you can’t just leave everything to chance and hope for the best.
“KiwiSaver is something you can control through choosing the right fund type for you, choosing the highest contribution rate you can afford, and making sure you qualify for the Member Tax Credit each year.”
