by Susan Edmunds
The bank released a survey yesterday showing that half of KiwiSaver members had not checked that their savings were on track to meet their retirement goals.
ANZ launched a new online calculator, which takes some personal information and works out the projected amount someone would have when they retire, the amount they will need and whether they are headed for a gap in their savings. The online tool then proposes and calculates the effect of steps people can take to close that gap, such as making a lump sum contribution, upping their regular contributions or moving their money to a different type of KiwiSaver fund.
The ANZ survey of KiwiSaver members last month found that 63% of members had checked their KiwiSaver balance in the past month, and a further 26% had checked their balance in the last year.
However, 46% of members had never checked to see whether their KiwiSaver was on track to meet their retirement goals, with a further 3% checking five years ago. Despite this, 71% of members believed they should check every year to ensure their KiwiSaver investment was on track.
“Research tells us that people who know their KiwiSaver balance are more confident of reaching their retirement savings goals than those people who do not know how much they have saved,” head of wealth John Body said. “It’s great to see more KiwiSaver members are checking their balances regularly. In recent times, we have put a lot of energy into making it easier for people to track their KiwiSaver which they can now do through their ANZ internet banking or our go Money app.”
Body said that people should check they are on track once a year and whenever there was a change in their financial circumstances – for example, starting a new job or buying a house: “It’s all part of taking control of your life and your investments.”
Lockyer acknowledged there was a school of thought that people should not check their balances regularly because KiwiSaver is a long-term strategy. She said while people should not be chopping and changing their strategy regularly, it was worth checking in from time to time.
International research had shown that when people could see their contributions being made regularly, they felt good about their savings, she said. “We do want people to engage with their retirement savings and taken the right action at various points in life.”
If people were taking action too regularly on their accounts, the bank would encourage them to get advice, she said.
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