Bank KiwiSaver lure may backfire
Matthews is speaking at today’s New Zealand Capital Markets Symposium, at AUT, about her paper on KiwiSaver member behaviour, which looked at what drives people to choose certain funds over others.
She said some of the research results were surprising.
Previous studies have shown that savers opted for bank funds because they could see their KiwiSaver balances online. But Matthews’ study said it also seemed to prompt people to move away from banks. “It’s odd. We’re speculating that it’s because they are able to check the balance, they can see when there is a downturn, they’re not happy and go somewhere else. It’s not a very good way of managing your KiwiSaver.”
She said it might be a sign of KiwiSavers’ inexperience. “It will be interesting to see whether that continues or whether it changes as people become more used to KiwiSaver and seeing ups and downs.”
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