FSC welcomes KiwiSaver report card

Media Statement

5 October 2017

FSC welcomes KiwiSaver report card

The Financial Service Council has welcomed the release of the annual FMA report on KiwiSaver.

“This is a valuable annual check-up on the health of the KiwiSaver system, how the scheme is growing, what’s working well, and what needs improvement. This transparency is a key part in continuing to build Kiwis trust and engagement in the scheme’, said Richard Klipin, CEO of the Financial Services Council.

“The report shows that overall KiwiSaver is in good shape and an increasingly important part of New Zealanders retirement planning. Total assets in KiwiSaver are now more than $40 billion and 2.7 million Kiwis are members.

“This is fantastic growth for a scheme that is only ten years old, and as the recently released FSC research ‘Growing the KiwiSaver Pie’ showed, there is overwhelming public support for further strengthening of KiwiSaver.

“As an industry, a major focus of ours over the last year has been improving transparency on fees, and education and engagement with KiwiSaver members. While it’s pleasing that the report demonstrates solid progress in these areas, it also finds that more still needs to be done.

“We accept this and will be redoubling our work on transparency and education to ensure that Kiwis enjoy a world-class saving scheme.

“The FMA raised some particular concerns about active fund choice and engagement with KiwiSaver default scheme members. This is a concern for the industry and an area we acknowledge that our efforts need to improve in.

“It reflects an ongoing challenge for us in engaging with members especially those in default schemes to make active fund choices.

“We need to take a long-term view of this process and recognise that it will take time for the results of industry engagement efforts to show through. Transfer numbers are up though for the second year in a row signifying that the public are increasingly engaging in and making choices about what scheme they are in.

“Being a default provider is a key role and one that our members take very seriously, especially when it comes to the ongoing and large task of engaging with New Zealanders and getting them on the KiwiSaver literacy journey.

“There are no silver bullets here and educating Kiwis about money and how KiwiSaver fits in is a long-term process that as the FMA report shows we still have a way to go on.

“FSC and our members are at the forefront of this debate and we welcome the FMA report and we won’t shy away from the challenges it sets out for us”, Mr Klipin concluded.

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