New research has underlined that it is time for a full review of KiwiSaver settings in order to get it working harder and smarter for all New Zealanders, says Financial Services Council (FSC) CEO Richard Klipin.
"The recent Mercer research clearly said that our KiwiSaver settings and plans are immature compared to Australia's superannuation savings scheme at the same point in their lifecycles," says Klipin.
"The research also found that the level of contributions Kiwis make needs to change to ensure they are ready for retirement.
"It is time for a full review of KiwiSaver. The scheme is nearing 20 years of age and a full review would look at issues such as contribution levels, ensuring all Kiwis have the opportunity to participate and how invested funds could be used to unlock economic growth in New Zealand.
“It is time for some fresh thinking and innovation with KiwiSaver. It has been a huge success for Kiwis and now is the time to capitalise on that success,” says Klipin.
The FSC strongly believe there are many opportunities to further strengthen the financial confidence and wellbeing of Kiwis.
“The recent news of KiwiSaver funds reaching the $100 billion mark shows the time is right for a detailed review to ensure we get the best settings in place and ultimately further grow financial confidence.”
The FSC renewed its call to the incoming Government to initiate a full review of the KiwiSaver settings.
"The financial services sector stands ready to work with the new Government and lend its collective experience to ensuring the long-term financial health of Kiwis is maximised for a happy retirement," Klipin says.