Documents shorter but still dense
Research by associate professor Aaron Gilbert and Ayesha Scott at AUT Business School Department of Finance has shown, on average, KiwiSaver PDS documents delivered under the new Financial Markets Conduct Act framework are significantly shorter and contain simpler language when compared with the prospectuses and investment statements they replaced.
But even the simplified product disclosure statements require a high level of literacy. People would need to know and understand about 100 finance-related terms.
"On average, simplified disclosure has made these documents easier to understand for our average New Zealander who is thinking about or invested in KiwiSaver," Scott said.
Gilbert said, given the uncertainty around the future of national superannuation, KiwiSaver would become a major component of people's financial future.
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