A groundswell of support is building for KiwiSaver, increasing New Zealanders’ appetite for retirement savings and boosting savings patterns, according to the latest AMP SuperWatch research.Of the people surveyed, 68% said New Zealand Superannuation would be inadequate financial support for them in retirement. Three-quarters of non-retired New Zealanders say they are aware of KiwiSaver (up from 49% six months ago) and 46% say they are likely to join (up from 40%).
“The awareness of KiwiSaver is starting to bite,” AMP Financial Services Managing Director, Greg Camm says. ”The research says nearly half the working population is likely to join KiwiSaver.
“That’s an amazing change in six short months, in awareness and willingness to act.
“There’s been a lot of politics around KiwiSaver. But this research shows that New Zealanders are aware it’s coming and are keen to be involved.”
Camm says the research also shows a shift in savings behaviour with more New Zealanders saving and options other than property taking precedence in New Zealanders’ retirement savings plans.
“Nearly three out of four or 71% of New Zealanders now say they save.
That’s a significant shift from 65% six months ago. They are diversifying their investment with 62% saying they contribute to a private superannuation savings plan, 50% that they invest in bank or term deposits (up from 40%) and 40% (up from 29%) into managed funds. 47% (down from 52% six months ago) say they save for retirement by paying of their home mortgage.
“Also in an increasingly complicated and ever-changing financial environment more respondents say they use guidance in their financial planning from sources other than themselves or friends (66% up from 56%).
“This statistically significant research shows the appetite for retirement savings has gone up a gear. Coupled with support from Government, employers, unions and the financial services industry, KiwiSaver looks to be a real winner.
There is no doubt in my mind KiwiSaver’s changing the whole savings environment,” Camm says.