Should KiwiSavers be allowed their lump sums?

Australian Treasury executive director and chief operating officer John Lonsdale said recommendations from the financial system inquiry to overhaul the country’s superannuation scheme were likely to be adopted.

A key finding was that people should no longer be given access to their superannuation savings as a lump sum when they retired. Instead they should be transferred automatically to a default fund designed to provide a stream of income.

Ana-Marie Lockyer, general manager, wealth products and marketing at ANZ, said she would support mechanisms such as limits to lump sum withdrawals being considered alongside the development of retirement product solutions.

She said it would not be a pressing concern until balances were bigger but providers had a responsibility to ensure that KiwiSaver members used their savings to enjoy a more comfortable retirement.