Media Advisory: The Financial Services Council supports the Retirement Commissioner’s call for changes to KiwiSaver

Following the release of Te Ara Ahunga Ora, Retirement Commission’s comprehensive analysis of KiwiSaver’s current settings for joining, contributing, and withdrawing from the scheme, the Financial Services Council (FSC) continues its call for an imminent and fulsome review by the Government.

New Zealanders deserve a dignified retirement, with FSC research showing that more than half of New Zealanders (56%) and the majority of Kiwi women (69%) do not feel financially prepared for retirement*.  Current participation and contribution rates aren’t going to meet our individual needs when we reach 65, especially for younger generations. This is reflected in the average KiwiSaver member balance of about $33,500, which is simply not enough to provide choices for older New Zealanders to enjoy a quality of life in retirement.
 
With KiwiSaver funds under management hitting the $100bn mark, we believe now is the time for a comprehensive review of the scheme to ensure it is fit for purpose for New Zealanders and future generations. Te Ara Ahunga Ora, Retirement Commission’s paper is a good start for sparking the conversations we must have as a country to address New Zealanders’ inadequate retirement savings.

A Government review into KiwiSaver must involve all main political parties, be bi-partisan and take a long-term view of retirement savings outcomes for 2050 and beyond.

The FSC has been asked by the Government to collaborate on KiwiSaver policies to ensure KiwiSaver is fit for purpose for New Zealanders. As a starting point, we have collaborated with our members to create a new FSC KiwiSaver Policy Priorities document which provides a framework for industry, employers, and the Government to work together. 

FSC members advocate for KiwiSaver changes in three key areas: increasing participation, growing contributions, and building the  financial capability of New Zealanders. We look forward to a close working relationship with Te Ara Ahunga Ora, Retirement Commission and our industry to advance the terms of the KiwiSaver review.

Click here to access the FSC’s Blueprint for Growth and KiwiSaver Policy Priorities.

*FSC Money and You: The Perception Gap research report, December 2023