23 October 2012
The Financial Markets Authority says it's time for KiwiSaver members to make sure their investment options best suit their future retirement needs.
The comment follows the release of FMA's KiwiSaver Report, which shows membership increased by 14 percent on the previous year. As of 31 March 2012:
• 1.91 million people were enrolled in KiwiSaver
• 23.4% of members were in default schemes
• Funds under management exceed $12.73 billion
• Approximately 47% of all funds were invested in conservative investment funds
FMA CEO Sean Hughes said the number of KiwiSaver members has since exceeded two million, and people need to take a long term approach to their investment.
"Our desire is for members to make decisions based on their life stage, age and personal circumstances which will leave them in the best financial position when they reach NZ Super age," Mr Hughes said.
"The type of KiwiSaver portfolio for someone in their 20s will be different from someone in their late 40s. It's never a bad time to reassess your investment options in consultation with your KiwiSaver provider and your financial adviser.
"KiwiSaver is a key focus for FMA, which has already published guidance on sales and distribution and performance fees.
New disclosure requirements, due be introduced early next year, will make it easier for investors to compare the performance of different funds and make more informed decisions.
A copy of the KiwiSaver Report can be found here.
FMA has also published the Superannuation Schemes Report which can be found here.
Tony Reid on 021 739 052 or firstname.lastname@example.org