Photo: 123RF
- KiwiSaver investors back higher contribution rates, a survey shows
- But they're reluctant to take the step themselves
- Investors would take lower pay now for future gains
- Uncertainty if saving enough for retirement
KiwiSaver investors support raising the level of minimum contributions but are reluctant to take the step themselves, according to a new survey.
Online investment platform Sharesies asked investors in its own KiwiSaver scheme about their intentions, views on contribution rates, and whether KiwiSaver would be enough to cover their retirement.
Sharesies' KiwiSaver manager Matt MacPherson said the survey showed mixed responses, but was a first look at what investors think rather than investment managers.
"This research confirms our hypothesis that there is appetite from members for a small drop in their take home pay for future gains. This question had a positive 78 percent rate."
Nearly 60 percent said they would support raising the minimum level to 6 percent, while nearly two-thirds said any increase should be gradual.
Take responsibility
MacPherson said the responses to the various questions suggested uncertainty about individual long- term and retirement outlooks.
But he said it also highlighted that investors had to take charge of their retirement savings by reviewing their investments and goals every few years.
"We want to encourage people to think about that with the information they have today have they got their own settings right and you may have to have that conversation with yourself every couple of years," MacPherson said.
He said those doing nothing and sticking without change were creating a false anchor that KiwiSaver would be sufficient, while those waiting for the government to make changes were abdicating responsibility.
Other survey findings included more than half checked their KiwiSaver balances weekly or monthly, and there was close to an even split between those confident that their savings and investments would support them in retirement and those not confident they would have enough.
Earlier this week a Massey University report detailed suggested levels of savings retirees would need on top of NZ Superannuation to finance differing types of lifestyles.
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