FSC KiwiSaver overhaul: Boost access to advice

Its KiwiSaver 2050 document, released today, identifies six issues to be tackled to improve the performance of KiwiSaver over the long term.

It said participation needed to be increased, contribution levels improved, more decumulation options were needed, focus should be put on financial literacy, there should be more political stability around the scheme, and improved scheme efficiency and effectiveness.

“Each of the areas identified above are complex and there are no easy fixes or quick solutions to achieving them,” said FSC chief executive Richard Klipin.

“However, the discussion paper does propose a number of ideas for further consideration and discussion to help drive better outcomes in these areas.

“For instance, increasing participation through providing a minimum level of saving so that those who are unable to join KiwiSaver can get started in the scheme.

“Or building contribution levels by increased engagement with KiwiSaver members in default funds to move them to more appropriate funds, making conservative funds less conservative, and continuing KiwiSaver contributions when a member is on parental leave.

“The paper also proposes consideration being given to the development of an annuity market in New Zealand to aid with decumulation, and the development of a political accord and dedicated Government Ministry to ensure ongoing stability and predictability in retirement policy-making.”