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Most people picking their own KiwiSaver managers

A report on the uptake of KiwiSaver shows that there has been a significant shift towards automatic enrolments and people are selecting their own managers.

Friday, March 14th 2008, 7:49AM
The government has trumpeted that KiwiSaver enrolments are now closing in on the 500,000 mark and this is high higher than expected – and budgeted for.

A number of speakers at a recent Conferenz KiwiSaver conference in Auckland expected there would be a spike in enrolments after April 1 when employer contributions become compulsory.

Under a staged programme employers will have to contribute 1% in the 2008-09 financial year and that will increase to 4% over the next four years.

A six-monthly report on KiwiSaver was released yesterday. While it primarily focussed on awareness and implementation issues it had some useful data on other areas.

It shows only 33% of people ended up in default schemes and 56% actively choose their own manager.

This is also seen in figures published by ASSET Magazine which show non-default providers such as Westpac, Gareth Morgan and Fisher Funds had been successful in attracting clients.

While managers spent a huge amount of time and effort encouraging employers to pick them as their "preferred provider" only 11% of KiwiSavers ended up in a scheme through this route.

The report says that when this information is broken down according to membership type it is clear that those members who have opted-in are more likely to have made an active choice of scheme and automatically-enrolled members are more likely to be allocated into default schemes or to join an employer-nominated scheme than to choose a scheme themselves.

It is possible that the decision on the part of opt-in members to actively choose a scheme provider is influenced by the characteristics of these members, namely that they tend to be older, with higher-incomes and therefore perhaps more consciously thinking about retirement or active in their financial management.

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Lender Flt 1yr 2yr 3yr
AIA 4.55 2.55 2.69 2.79
ANZ 4.44 3.15 3.25 3.39
ANZ Special - 2.55 2.69 2.79
ASB Bank 4.45 2.55 2.69 2.79
Bluestone 3.49 3.49 3.49 3.49
BNZ - Classic - 2.55 2.69 2.79
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 3.15 3.29 3.39
BNZ - TotalMoney 4.55 - - -
CFML Loans 4.95 - - -
Lender Flt 1yr 2yr 3yr
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.45 - - -
Credit Union Baywide 5.65 3.95 3.85 -
Credit Union South 5.65 3.95 3.85 -
First Credit Union Special 5.85 2.95 3.45 -
Heartland 3.95 2.89 2.97 3.39
Heartland Bank - Online - - - -
Heretaunga Building Society 4.99 3.85 3.95 -
HSBC Premier 4.49 2.45 2.60 2.65
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 3.69 2.45 2.65 2.79
Kainga Ora 4.43 2.93 3.07 3.24
Kiwibank 3.40 3.30 3.54 3.54
Kiwibank - Offset 3.40 - - -
Kiwibank Special 3.40 2.55 2.79 2.79
Liberty 5.69 - - -
Nelson Building Society 4.95 3.45 3.49 -
Pepper Essential 4.79 - - -
Resimac 3.39 3.35 2.99 3.35
SBS Bank 4.54 3.05 3.19 3.25
Lender Flt 1yr 2yr 3yr
SBS Bank Special - 2.55 2.69 2.75
The Co-operative Bank - Owner Occ 4.40 2.55 2.69 2.79
The Co-operative Bank - Standard 4.40 3.05 3.19 3.29
TSB Bank 5.34 3.29 3.45 3.59
TSB Special 4.54 2.49 2.65 2.79
Wairarapa Building Society 4.99 3.55 3.49 -
Westpac 4.59 3.15 3.29 3.39
Westpac - Offset 4.59 - - -
Westpac Special - 2.55 2.69 2.79
Median 4.55 3.00 3.13 3.02

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