Media release
MR No. 2018 – 20
18 May 2018
The Financial Markets Authority (FMA) is calling on KiwiSaver members to check their annual statements this year to find out whether they are getting value for money. For the first time all KiwiSaver members will be able to see fees in dollar amounts on their statements.
Many people are unaware of the costs and charges in KiwiSaver because, besides the annual administration fee, these fees have previously been set out as a percentage.
The FMA has developed a KiwiSaver health checker tool to help people answer four important questions about their account:
- Am I in the right fund?
- Could I be saving more?
- Am I paying the right amount of tax?
- Am I paying too much in fees?
This week the FMA launched a campaign targeting young women because its own research shows that this age group are the least engaged with their KiwiSaver materials and they are least likely to take action.
One third of all KiwiSaver members are aged 18-35 years old. There are 355,000 women aged between 18-30 in KiwiSaver and this demographic have the most to gain from getting more involved with their retirement savings account.
The FMA’s social media campaign is delivered with videos of women talking to women, as research suggests women are more likely to be influenced to take action through their peers.
Simone Robbers, FMA Acting Director of External Communications and Investor Capability said, “Women tend to be less confident than men about investing, however they often make better investors over the long-term because they are less likely to chop and change direction.
We encourage everyone to check their annual statement this year and look at how much their fees are. Many will be surprised. It’s a good prompt to find out more about your KiwiSaver account, check what you are paying for and use some of the FMA’s tools. Find out whether you are getting value for money and are on track for meeting your savings goals.”
Fees vary across KiwiSaver providers depending on the type of fund and the services offered by the fund manager.
This change to annual statements from 1 April this year is a result of work by the Ministry of Business, Innovation and Employment (MBIE), Commission for Financial Capability (CFFC) and the FMA to improve the transparency of reporting for KiwiSaver members. It enables investors to clearly understand how much they are paying for their KiwiSaver account.
Details of the Facebook campaign can be viewed here
Contact:
Edwin Mitson
Senior Adviser, Media relations
021 702 036
