KiwiSaver is the third most popular investment class in the country, with 12% of New Zealanders believing it offers the best rate of return, according to the latest ASB Investor Confidence Survey.
KiwiSaver came in at joint third with bank savings accounts, behind term deposits in first place with 19% and rental property at 15%.
“Over the past year KiwiSaver has climbed from last place to third equal in return perceptions, the highest level yet,” said ASB head of Private Banking and Wealth Management Jonathan Beale. <
“Those expecting KiwiSaver to be their main source of retirement funding also reached a new high of 62% (up from 61% in Q4 2010), while respondents currently using KiwiSaver climbed 5% to 43% – another high.”
“After almost four years of contribution from individuals, employers and the Government, investors are starting to sit up and take notice of KiwiSaver. Fund balances are growing, and the KiwiSaver scheme has proven to be a successful way of turning around the poor savings habit of many New Zealanders.”
Beale said he believed there will be a change in investors perception of KiwiSaver in the wake of changes to be announced in this week’s Budget – which the Government has confirmed will include reductions to Member Tax Credits.
“However, we believe KiwiSaver is still likely to remain the most popular retirement savings vehicle for respondents in our survey,” he said.