An estimated 800,000 KiwiSaver members potentially don’t know which fund they’re in, a new survey shows.
The Commission for Financial Capability surveyed 4,000 people, and found that 28 per cent enrolled in KiwiSaver didn’t know if their money was in a conservative, balanced, or growth fund.
As there are 2.9 million KiwiSaver members, this means that potentially 800,000 people don’t know what kind of fund their money’s in.
When asked if they knew how much they were contributing to KiwiSaver each payday, 17 per cent of participants didn’t know. Contribution rates are 3 per cent, 4 per cent, or 8 per cent.
Meanwhile, 12 per cent of people didn’t know how much money was in their KiwiSaver account.
When they were asked if they received the annual government contribution of NZ$521, called the Member Tax Credit, in the past year, 28 per cent didn’t know if they got it, and 10 per cent didn’t even know it existed.
Peter Cordtz, Community Education Manager at the CFFC, says in a press release that many people didn’t know that KiwiSaver wasn’t just a savings plan, it was an investment.
“It seems too many of us are passive participants in our preparation for retirement,” says Cordtz.
“Life isn’t Lotto. You can’t just leave everything to chance and hope for the best. KiwiSaver is something you can control through choosing the right fund type for you, choosing the highest contribution rate you can afford, and making sure you qualify for the Member Tax Credit each year.”
First published October 2018
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