tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Friday, November 1st, 10:39AM

News

rss
Latest Headlines

Majority of KiwiSavers facing shortfall, irrespective of fund choice

The majority of KiwiSavers are destined to fall short of their desired retirement income, according to the ASB KiwiSaver Survey.

Tuesday, June 12th 2012, 10:22PM 2 Comments

by Benn Bathgate

The survey found more than 70% of respondents said the scheme encouraged retirement saving, and also that most respondents had definite retirement goals.

Around half aim to retire on $40,000 per annum, with a target of $600,000 accumulated by the end of their working life.

However, ASB wealth and insurance general manager Blair Turnball said most would fail to hit these targets.

“Looking at the savings rates of almost 350,000 KiwiSavers in the ASB KiwiSaver Scheme we can clearly see that most people are going to fall short of these goals.”

He also dismissed a common industry criticism that the savings shortfall was being exacerbated by the fact too many people were remaining in conservative default funds.

“Regardless of the kind of fund they invest in, many are simply not saving enough,” he said.

“The reality of what KiwiSavers are putting aside for their retirement means they will fall short of the nest egg they need.”

The survey also revealed the impact age and gender have on attitudes towards retirement saving.

Women were less likely to be saving, less confident in their ability to make saving and investment decisions and more risk averse.

Turnball said the survey also identified the group most at risk in terms of retirement readiness.

“They are significantly more likely to be women in families with school-aged children and who have low personal incomes.”

The survey also found less than half of respondents under 30 are saving for retirement, climbing to two-thirds between 30 and 50 and 80% of those between 50 and 60.

Turnball said the results of the survey were promising in that they showed KiwiSaver was encouraging saving, though more work is needed.
“Motivation is one issue we have to address, but beyond that the knowledge gap is still very apparent.”

Benn Bathgate is a business reporter for ASSET and Good Returns, email story ideas to benn@goodreturns.co.nz

« 100-year-old problem for advisersAdviser book values boosted by sales drought »

Special Offers

Comments from our readers

On 13 June 2012 at 8:34 am Zef said:
How can one expect people to save for their retirement when greedy corporations keep increasing their level of profit continually, irrespective of world financial conditions, by simply charging more and keeping wage rises to virtually miniscule amounts for the last 5 years.
When KiwiSaver was introduced and 4% was a required contribution by employees, this was effectively a 4% pay cut for the workers at the time. People were then faced with ever increasing Fuel costs, Food costs, Insurance costs, Local body rates demands and the list goes on.
It's all very well for Wealth managers, consultants, fund managers on six+ figure salaries to pontificate about how much "Joe Average" should be contributing to their coffers, but the reality is if there is no money after expenses, people can't save.
As far as requirement goes, many people are mortgage free by that age and even a small nest egg of less than 100K in a Bank Term deposit that is not fleeced by Fund Managers is enough to keep people in comfort, for the unexpected expense. You don't need $40k p.a.to be comfortable in retirement!
On 13 June 2012 at 7:41 pm Fun d Manager said:
Great points Zef.

Agree you shouldn't have more than $100 k in any one bank deposit, but what else do you do with all the spare cash?

As for the $40k p.a. - absolutely spot on buddy. $40k wouldn't even buy you a half decent holiday. I am thinking that I need more like a couple of hundred a year. What do you think?
Commenting is closed

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Weekly Wrap

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 5.44 - - -
AIA - Go Home Loans 7.99 5.99 5.69 5.69
ANZ 7.89 6.59 6.29 6.29
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 5.99 5.69 5.69
ASB Bank 7.89 5.99 5.69 5.69
ASB Better Homes Top Up - - - 1.00
Avanti Finance 8.40 - - -
Basecorp Finance 9.60 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.94 - - -
BNZ - Rapid Repay 7.94 - - -
BNZ - Std 7.94 5.99 5.69 5.69
BNZ - TotalMoney 7.94 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 5.79 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 7.65 5.99 5.75 5.69
Co-operative Bank - Standard 7.65 6.49 6.25 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - 6.40 6.10 -
First Credit Union Standard 8.50 7.00 6.70 -
Heartland Bank - Online 7.49 ▼5.65 ▼5.55 ▼5.55
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.00 6.50 -
ICBC 7.49 5.99 5.65 5.59
Kainga Ora 8.39 7.05 6.59 6.49
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 7.75 6.89 6.59 6.49
Kiwibank - Offset 8.25 - - -
Kiwibank Special 7.75 5.99 5.69 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 8.44 ▼6.39 ▼6.09 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 7.99 6.95 6.29 6.29
SBS Bank Special - ▼6.15 5.69 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 5.44 ▼5.15 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank 8.69 6.79 6.49 6.49
TSB Special 7.89 5.99 5.69 5.69
Unity ▼7.64 5.99 5.69 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society 8.50 ▼6.19 ▼5.79 -
Westpac 8.39 6.89 6.39 6.39
Westpac Choices Everyday 8.49 - - -
Westpac Offset 8.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 6.29 5.79 5.79
Median 7.99 6.17 5.79 5.69

Last updated: 30 October 2024 9:36am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com