KiwiSaver still a mystery for many Kiwis
These are the two main findings of a recent public survey of 490 New Zealanders aged 18-64, undertaken by New Zealand investment and superannuation specialist, ING.
The online nationwide survey canvassed opinion from those eligible to save through KiwiSaver, the new voluntary, work-based Government savings initiative designed to encourage New Zealanders to save for their future.
The new scheme will enable employees to have part of their salary – either 4% or 8% – deducted automatically by employers and invested into an approved superannuation platform.
However, the results of the survey show there is a long way to go before New Zealanders are adequately informed about KiwiSaver. This comes against an already weak savings record among New Zealanders.
In the survey, only 13% said they felt they had their retirement savings completely under control, while more than half of those surveyed (53%) said they currently have no retirement savings pan.
According to the survey, while 62% of working age New Zealanders are aware that a workplace savings scheme is about to be launched, 78% said they knew few details of KiwiSaver.
Even those who felt they did know something about the scheme revealed clear knowledge gaps, after completing a brief true/false quiz on KiwiSaver.
The question answered incorrectly by most was about where KiwiSaver contributions would be invested, with over half (52%) believing funds will go into the New Zealand Superannuation Fund – the so-called Cullen Fund.
However, some of the survey data was positive, with other key findings including:
- New Zealanders appear open to workplace savings schemes. At present, 25% of working age adults are in a workplace where a retirement saving scheme is on offer, and where such a scheme exists, 56% of those surveyed take part.
- Of those who don’t have a scheme currently on offer, 60% say they would like to have that option.
- Of all those surveyed, only 13% said they were against the concept of KiwiSaver, while two thirds said they support the idea to some degree.
And highlighting the sea change in sentiment since the landslide anti-compulsion retirement saving referendum 10 years ago, 50% of those taking part in the ING survey now say they favour or strongly favour the concept of mandatory saving through the workplace, with only 28% against the idea.
Steven Giannoulis, ING’s General Manager Marketing and Investor Services, says the survey “clearly shows that Kiwis understand the need for a mechanism to help them save for retirement and see direct deduction from their wages as the most appropriate way to achieve this”.
ING, one of six government-appointed default providers for KiwiSaver, intends running the survey again in June, just prior to the launch of KiwiSaver on 1 July 2007.