FSC welcomes KiwiSaver announcements – but still more to do

Today at the Financial Services Council (FSC) of New Zealand’s annual conference at the Cordis Hotel in Auckland, Leader of the Opposition Christopher Luxon announced a proposed policy that would allow KiwiSaver members to split their retirement savings across multiple providers.  

The FSC welcomes the policy debates this has initiated about KiwiSaver.  

“Financial services is part of the engine room of growth, ideas and innovation for New Zealand,” said FSC CEO Richard Klipin. 

“As such, a clear vision for the sector and for KiwiSaver in particular – a vital retirement savings vehicle – is critical.”   

“The FSC is calling for a full review of KiwiSaver as part of our newly-launched Blueprint for Growth, which is the FSC’s policy position for the sector,” continued Klipin.  

“We’re delighted that thought is being put into ensuring KiwiSaver is fit for purpose.”  

FSC research shows that 59% of Kiwis don’t feel prepared for retirement. As part of the review of KiwiSaver settings outlined in the Blueprint, the FSC and its members are calling for increased contributions, increased participation, and a lift in financial capability.  

“Will this proposed policy address these issues? It’s a start, however the devil is in the detail,” said Klipin.  

“Freedom to choose where your KiwiSaver goes will empower consumers and give them choice.  

“However, it may add some complexity to what is a beautifully simple system.” 

“We also know there are substantive and strategic issues around contribution levels, the age of retirement, the 25% gender retirement gap, and the fact that 53% of us aren’t able to access $5,000 in time of emergency.  

“These require serious attention if we are to make KiwiSaver a best in class system globally. 

“As such, we welcome further engagement with the National Party of New Zealand and all political parties to ensure we get KiwiSaver settings right and ultimately grow the financial confidence and wellbeing of New Zealanders.”