The Commission for Financial Capability and the Financial Markets Authority have today released the second part of their research into how well New Zealanders are preparing for retirement.

It found a quarter of people nearing retirement did not know how they would manage the money they had amassed in their KiwiSaver accounts.

Asked whether they would be interest in an investment product that would provide weekly or fortnightly income in retirement, 8% said they were extremely interested, 21% were very interested and 21% quite interested.

The most likely groups to be interested were those who did not have a financial plan and those who did not have enough savings or investments to provide the sort of lifestyle they wanted.

Almost half of those aged 50 to 64 planned to leave their money in their KiwiSaver accounts. Another 17% plan to withdraw it as a lump sum.

Of those planning a withdrawal, 53% want to spend some and invest the rest elsewhere while just over a third want to invest the whole lot elsewhere. Ten per cent said they planned to spend it.

The most important considerations for an investment were that it would provide a regular income and provide them access to the money when they needed it.

Only about half said the information available from their KiwiSaver provider was useful in making decisions about their retirement.

David Boyle, CFFC Group Manager Investor Education, said: “It is pleasing to see half those members who have access to their funds today view KiwiSaver as an investment option not just for saving for retirement, but to generate some additional growth and income during the years they are in retirement.”

But he said KiwiSaver was not the only solution: a range of different income options will be needed in the future and three quarters of those interviewed who had savings or investments, including KiwiSaver, were interested in a product they could use to invest their lump sum and receive a guaranteed weekly or fortnightly income during their retirement.

Boyle said: “There seems to be a genuine view from this survey that some certainty of income is important to people’s financial wellbeing during their retirement years. One of the most important factors for KiwiSaver members today is for them to determine what income they are going to generate from their KiwiSaver balance tomorrow.”

The survey also showed that those who either had a financial plan, or had worked out what they needed as an income on top of NZ Superannuation, were more likely to choose more diversified investments with a higher allocation to growth assets.

The survey found that more women than men had signed up to KiwiSaver in the over 50s age group. But women were less likely to choose higher-risk options, with more growth assets, for their funds.