KiwiSaver retirement survey results
Research by the Financial Markets Authority suggests you probably don't.
The FMA surveyed over 1,300 KiwiSaver members and found that most of them read the statements they receive from their provider. However only a minority know whether they are on track to meet their retirement income goals.
The survey found that 21 percent of members read their KiwiSaver statements thoroughly and 58 percent briefly look at them. However, only 23 percent of members reported having checked to see if their KiwiSaver account was on track.
Women aged between 18 and 29 were the least likely to read their KiwiSaver statements.
Men aged sixty or older were the most likely to read their statements thoroughly.
The Commission for Financial Capability's David Boyle says the survey shows more could be done by fund managers to make the statements useful for investors.
The survey asked what additional information people would like to see.
Seventy two percent said they would like to see information about the lump sum they were on course to receive when they retire.
Sixty two percent wanted to see what weekly income that lump sum would deliver in retirement.
Fees were another concern.
Thirty seven percent said they would like to see the fees they paid expressed in a dollar amount.
This backs the findings from a recent survey by the Commission for Financial Capability (CFFC).
Fund managers display the fees in percentage terms, but only some provide a dollar amount.
High fees are the most likely reason that people will make changes to their KiwiSaver. When asked what is likely to lead people to make changes, 46 percent said they'd change if their fees were too high. Thirty six percent said they'd make changes if their fund had lost money in the past year.
The FMA says there are some questions every KiwiSaver investor should ask:
- Do I know the income I'd like to have in retirement, and the number I need to get to?
- Given my current contributions and what fund I'm invested in, am I on track to hit that final number?
- If I am not on track, what's in the way? Am I contributing enough? Am I paying too much in fees? Are the returns I expected not being delivered? Are my goals actually reasonable? Is it some or all of the above?
Have you read your statement?
Have you checked if your KiwiSaver is on track to produce the income they are planning for in retirement?
What information was most useful?
What additional information would you like to see?
What is most likely to prompt you to make changes to your KiwiSaver?
The FMA says one third of people are not a member of any KiwiSaver scheme. They are most likely to be aged 60 or older, live in the North Island but not Auckland or Wellington, and have annual personal and household income of up to $50,000.