Behavioural insights change KiwiSaver behaviour
The FMA has reported on its work with Kiwi Wealth, which was designed to determine whether behavioural prompts increased the number of active fund choices members made.
New Zealand’s nine default KiwiSaver providers each have an obligation to help their members make an active choice about the best type of fund to suit their savings goals.
The FMA's KiwiSaver report in 2016 reported on the success of these efforts. It showed most default KiwiSaver members were not choosing their own fund.
While one provider achieved 22% of members making a fund choice, the others ranged from 1% to 8%. Most providers were clustered around 3% to 4%. "We want this number to increase and believe providers can do more to encourage their members," the FMA said.
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