Your KiwiSaver costs will soon be revealed
The Government says it is already working on implementing one of the Retirement Commissioner's ideas for revamping KiwiSaver.
Commissioner Diane Maxwell yesterday unveiled seven ideas for changing KiwiSaver.
Commerce and Consumer Affairs Minister Paul Goldsmith says work is underway to require KiwiSaver providers to disclose the total dollar cost of all fees in their annual statements.
Most providers disclose the fees in percentage terms. But Ms Maxwell believes stating the fees in dollars will be easier for people to grasp.
The Commission for Financial Capability is hoping for much more success than it had three years ago when it presented the Government with ideas for changing KiwSaver. The new ideas have been presented in a quite different way, in the hope they will generate serious discussion, involving politicians and the public.
Ms Maxwell knows if you mention words like "100-page report" it's likely most people will try to change the subject as quickly as possible. But talk about KiwiSaver videos starring Batman, Superman, Barbie and Ken and you might have a much better chance of grabbing people's attention.
The interactive videos, featuring Superman, Batman, Barbie and Ken, can be found here.
The Commission says a 20-year old earning $40,000 would increase their KiwiSaver balance over their working life by $82,767 to $362,142 by contributing at 4 percent (with a matching employer contribution of 4 percent), rather than at 3 percent.
It says a 30-year old earning $50,000 would increase their KiwiSaver balance over their working life by $58,760 to $255,600 by contributing at 4 percent (with a matching employer contribution of 4 percent).
Next week the commission will release its ideas for changes to New Zealand superannuation.