It aims to help members assess their retirement funds
The Financial Markets Authority (FMA) has launched a campaign to help KiwiSaver members see how much they have in retirement.
The campaign aims to help KiwiSaver members interpret their annual financial statements and learn what the figures would amount to as a weekly income in retirement.
“KiwiSaver is a long-term investment proposition, and it can be difficult for people to visualise how much the money they contribute today will or could amount to at retirement,” said Rob Everett, the chief executive officer of FMA.
This year's statements include a projection of how much money each member may have when they turn 65 years old. However, the FMA only based their interpretations on some assumptions to be applied across all member statements.
“While some may be pleasantly surprised at how much they could potentially have at age 65, others might want to make some changes to boost their retirement savings,” Everett said.
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Everett said many investors in balanced or growth funds had seen negative fund performance for the year ended March 2020 because of a sharp downturn in financial markets associated with COVID-19.
“KiwiSaver is nearly 13 years old, and most investors are used to seeing their balances head continually upwards. There's only been one other time – the Global Financial Crisis (GFC) a decade ago – when KiwiSaver balances were impacted this negatively, so this will be unfamiliar territory for many,” he said.
“After an unusually long period of growth in asset prices, it's fair to say KiwiSaver members have been given a crash course in the risks and the volatility in investing over the last few months.”
Jane Wrightson, the retirement commissioner at FMA, added: “KiwiSaver investments in shares and property can swing up and down, sometimes dramatically, but historically deliver better returns over the long term. Find out which fund is the right one for you and stick with it – you'll reap the rewards in years to come.”
