Budget changes hit KiwiSaver’s appeal

kiwiSaver fell from 12% to 9% as the investment offering the best return, ranked behind term deposits, rental property and bank savings.

"The changes to KiwiSaver announced in Budget 2011 appear to have shifted investor perceptions of KiwiSaver," said ASB head of private banking and wealth management, Jonathan Beale.

"The swing in attitude can also be seen in the 6% drop in the number of people that think KiwiSaver will encourage New Zealanders to save for their retirement, from 75% to 69%."

However, the survey also found out of those using or intending to use KiwiSaver, a record 63% said it would be their main source of retirement provision, a percentage which has been slowly rising over the past year.