New Zealanders keen on KiwiSaver: AMP

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.

[ | | | | ]

10 weeks to go – and much to do

Last week I chaired a one-day KiwiSaver Masterclass conference in Auckland which made me, as an employer, feel much better about implementing a savings scheme in our business.
Basically the thoughts I expressed in an earlier Blog are similar to how others are feeling.
The conference was attended by around 70 people who were predominantly HR and payroll people. A couple of the key takeouts for me were that, yes, the awareness is growing about KiwiSaver, but the knowledge base is still quite low.
In addition to that very few of the delegates had implementation plans in place yet – although the start date is just 10 weeks away.
For SMEs that probably isn’t too bad, but for bigger employers with multi-site operations I suspect things are going to be tight.
One of the issues we face is that there is still an information vacuum. No one has seen what the default products actually look like yet, and Inland Revenue still hasn’t completed some of the forms.
The good news here is that IRD plans to send enrollment packs out in late May. I know many people are looking forward to seeing these.
I understand from the default providers perspective that they are not allowed to promote their schemes until they are signed off by both the IRD and the Government Actuary.
From what I can see the GA –as he is called in the industry – is one of the most important and powerful people in the whole KiwiSaver chain, yet his office only has something like four staff. Geez that seems like one way to overwork people and slow progress down.
The conference was well-worth attending and I will have plenty more to comment on over coming days and weeks on KiwiSaver implementation.
Keep an eye out for future posts (best way to get them is to sign up to the KiwiSaver.net.nz mailing list). Likewise I am interested in any questions you may have and would like answered. Also would love to find out how others are going with implementation. Use the comments box below to get in touch with us.

[ | | | | ]