05 Mar FSC Calls for Essential Changes to Close the KiwiSaver Gap
Last year the Financial Services Council released a new report “Shaping Futures: Closing the KiwiSaver Gap“, which sends a clear message go Government, industry and consumers that combined action is needed to close the KiwiSaver gap in New Zealand.
The report is based on three significant pieces of research commissioned by the FSC with responses from over 2,100 New Zealanders and carried out by Horizon Research – ‘Generation KiwiSaver’, ‘Growing the KiwiSaver Pie’, and ‘Great Expectations – Retirement Realities for Older New Zealanders’.
“Collectively this research gives us one of the most comprehensive pictures to date of what New Zealanders of all ages think of KiwiSaver and saving for retirement”, says FSC CEO, Richard Klipin.
“Looking across the three parts of research, we have developed four key recommendations which the FSC believes will enable more New Zealanders to enjoy a well-funded retirement and worry-free future.
“The recommendations are ambitious, and it’s heartening to see the government is making moves to address some of these issues. It’s a great start. We believe they are achievable and they will provide a blueprint for closing New Zealand’s future savings gap.”
The Four recommendations
- Contributions: Essential changes to enable flexible, controlled and automatic increases in contributions.
- Taking Control: New Zealanders want a clear strategy around the future of KiwiSaver, with a greater focus on leadership and long-term thinking to benefit all.
- Getting the most out of KiwiSaver: The Government needs to review the rules on default fund allocation, incentives (including multiple retirement ages) and centralise hardship evaluations.
- Advice: clearer information is needed, along with making it easier for KiwiSavers to switch to the right provider for them and integration of new technology to improve proactive and transparent advice.
A very real concern for New Zealanders is whether they will be able to afford a comfortable retirement. We’re here to help – if you’d like advice or more information, get in touch.