KiwiSaver goals unclear for most - survey
We know we need to save for our retirement. Some people have also worked out how much money they will need to make it enjoyable.
But do you know how much you will have actually saved by the time you stop working? A new survey suggests many KiwiSavers have no idea whether they are saving enough.
A survey by Horizon Research of 781 KiwiSaver members found around half think they know how much money they will need, but 77 percent do not know how much they will actually manage to save.
The research was commissioned by Kiwi Wealth, the KiwiSaver arm of Kiwibank.
"For an initiative designed to encourage retirement savings, it's alarming that 77 percent of KiwiSaver members don't know how much will be in their account when they retire," says Joe Bishop, Kiwi Wealth head of retail wealth and marketing.
Among those surveyed, 55 percent reckoned they will need $400 to $600 a week, after tax, to live on.
Mr Bishop says it is likely that many people are seriously underestimating how much they'll need to have the retirement lifestyle they hope for.
"Half of the KiwiSaver members surveyed thought they would need $400 to $600 a week to get by when they reach retirement age. Massey University research shows that even for a 'no-frills' retirement, someone living in a metropolitan centre will need $490 a week."
Mr Bishop is also concerned too many people who have joined KiwiSaver do not know what type of fund they are in, or even who their provider is.
The study found:
Mr Bishop says KiwiSaver members need to be more proactive about their investment and make more informed decisions. But he believes the onus also needs to be on KiwiSaver providers to engage more with their customers and help them make good decisions for their investments.
If you want to be more proactive about your KiwiSaver investment, or your finances, a good starting point is sorted.org.nz, which is run by the Commission for Financial Capability and offers impartial advice.