FMA reports on KiwiSaver
The value of assets invested in KiwiSaver has jumped 30% in the last year, but the Government is now chipping in a lot less.
Thursday, October 24th 2013, 3:33PM
by Susan Edmunds
The FMA has released its KiwiSaver report for the year ended June 30. It said investment had passed $16.5 billion.
The number of KiwiSaver members had also increased almost 10%, to 2.09 million.
Of those, 22.2% of members are in default schemes. Just over 20% of all the assets invested are with the six defaults.
Last year, 22,634 people turned 65 and were eligible to withdraw their KiwiSaver accounts.
They withdrew $31.56 million. Just under $27 million was withdrawn by people who cited significant financial hardship.
Government contributions to KiwiSaver accounts dropped 60% because of changes to the amount of tax credit that is available.
Chief executive Sean Hughes said the new standardised quarterly disclosure statements for retail schemes would make it easier for members to review performance and fees across different funds and make more informed decisions.
“KiwiSaver is a key area of focus for FMA and we’ve been working hard to ensure providers are complying with their obligations, which in turn increases public confidence in KiwiSaver,” he said.
There were two new KiwiSaver schemes registered over the past year. At June 30, there were 45 schemes operating, down from 50 the previous year. Another four are in the process of being wound up.
The FMA said concentration of the sector was a key trend that could be a problem if it continued. The four largest schemes manage 76% of KiwiSaver assets, up from 69% in 2012.
| « Reporting regime in effect | KiwiSaver contributions still slow » |
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