About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Thursday, September 19th, 9:54AM
rss
Investment News

KiwiSaver belongs to the KiwiSavers

Half a million KiwiSaver members will have access to over $36 billion of accumulated savings over the next 15 years. Research by New Zealand Income Guarantee Limited (NZIG) in conjunction with actuarial consultants Melville Jessup Weaver (WJ) forecasts how individual KiwiSaver accounts will grow over the next 15 years.

Tuesday, April 8th 2014, 11:00AM

by Ralph Stewart

Account balances vary according to the earnings and priorities of the individual KiwiSaver. Those who joined KiwiSaver in 2007, earning on average less than $30,000 each year and now aged 65 are forecast to have a balance of $6,514 today, a KiwiSaver who has been earning more than $120,000 each year can expect to have a balance of $63,327 today.

KiwiSavers who joined the scheme in 2007 and turn 65 in 2028 can expect to retire with a substantial sum. Those earning $30,000 pa or less, $37,679 and those earning over $120,000 pa, $326,431.

KiwiSavers became eligible to withdraw their funds form the scheme in 2013 with over 70,000 people now free to spend their savings. A recent Retirement Commission survey found that, of the more than 70,000 KiwiSavers who’ve become eligible to withdraw their funds since 2013, around one third have cashed up and spent some of their savings on holidays, cars and home improvements.

New Zealand Income Guarantee (NZIG), a new company, is developing a retirement income product that replaces the old style annuity products, where investors lost control of their capital, experienced high fees and often received low returns. Managing director Ralph Stewart said;

“The product will be tailored to meet retirement needs and aspirations. It will allow investors aged 65 or older to remain in KiwiSaver style funds, have access to their capital at all times, and receive a minimum guaranteed annual income for life.

We have talked with people from all walks of life who are either approaching or already retired about how they will manage the transition from paid employment to managing their own income in retirement.

Their messages were very clear; 

  • Decisions over how retirement savings are to be spent belong to the saver, not the Government;
  • Additional regular income to supplement NZ Super is important
  • People worry about outliving their savings.

The attitudes of New Zealand investors are similar to those of other OECD countries Stewart said.

“We have been working in the US and Japan to understand how retirement income products have developed to meet similar consumer demand in those countries. It is clearly possible to develop products that allow retirement investors to maintain control of their capital at all times and receive a tax effective regular income that exceeds those of traditional bank term deposits.”

Ralph Stewart is a director of NZ Income.

« Will the global economy be better this year?Too many Kiwis blowing KiwiSaver payouts »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend

Good Returns Investment Centre is brought to you by:

Subscribe Now

Keep up to date with the latest investment news
Subscribe to our newsletter today

FundSource Research
  • Westpac Premium Investment Funds
    27 May 2019
    The Westpac Premium Investment Funds offers a focused investment menu of multi-manager single sector funds that draws on all of the BTNZ investment teams...
  • Westpac KiwiSaver Scheme
    27 May 2019
    The Westpac KiwiSaver Scheme offers a focused investment menu of multi-manager diversified funds that draws on all of the BTNZ investment team full capabilities...
  • Milford KiwiSaver Balanced Fund
    3 May 2019
    The Milford KiwiSaver Balanced Fund is a multi-asset portfolio that is best suited to long term investors who can accept some investment risk over the...
© 2019 FundSource Research.

View more research papers »

Edison Investment Research
  • Heliad Equity Partners
    16 September 2019
    Portfolio clean up under way
    Heliad Equity Partners is repositioning its portfolio following the management changes earlier this year. This involves the gradual disposal of holdings...
  • Ocean Wilsons Holdings
    11 September 2019
    Sailing against the wind
    We forecast Wilson Sons’ (WSON’s) EBITDA to fall 6% y-o-y this year, still affected by the sluggish Brazilian economy and a tough competitive...
  • Deutsche Beteiligungs
    10 September 2019
    Continued sector diversification
    Deutsche Beteiligungs (DBAG) is proceeding to deploy the capital commitments of DBAG Fund VII (€1,010m including top-up fund), with 71% of the main...
© 2019 Edison Investment Research.

View more research papers »

Today's Best Bank Rates
Rabobank 2.00  
Based on a $50,000 deposit
More Rates »
Cash PIE Rates

Cash Funds

Institution Rate 33% 39%
ANZ 0.10    0.10    0.11
ASB Bank 0.10    0.41    0.42
ASB Bank 0.10    0.59    0.56
ASB Bank 0.10    0.61    0.64
ASB Bank 0.15    0.66    0.69
ASB Bank 0.20    0.72    0.75
BNZ 0.10    0.10    0.10
Heartland Bank 1.50    2.59    2.70
Kiwibank 0.75    0.77    0.88
Kiwibank 1.75    1.81    1.89
Nelson Building Society 3.75    3.90    4.08
SBS Bank 1.50    -    -
TSB Bank 0.90    1.64    1.71
Westpac 0.35    0.36    0.38
Westpac 0.05    0.10    0.11
Westpac 1.40    2.16    2.26

Term Funds

Institution Rate 33% 39%
ANZ Term Fund - 90 days 2.50    2.60    2.79
ANZ Term fund - 12 months 3.00    3.39    3.55
ANZ Term Fund - 120 days 2.65    3.09    3.22
ANZ Term fund - 6 months 3.05    3.45    3.60
ANZ Term Fund - 150 days 2.80    -    -
ANZ Term Fund - 9 months 3.05    -    -
ANZ Term Fund - 18 months 3.00    -    -
ANZ Term Fund - 2 years 3.05    -    -
ANZ Term Fund - 5 years 3.20    -    -
ASB Bank Term Fund - 90 days 2.60    2.67    2.79
ASB Bank Term Fund - 6 months 3.20    3.29    3.43
ASB Bank Term Fund - 12 months 3.20    3.33    3.48
ASB Bank Term Fund - 18 months 3.50    3.65    3.81
ASB Bank Term Fund - 2 years 3.65    3.81    3.98
ASB Bank Term Fund - 5 years 4.10    4.28    4.48
ASB Bank Term Fund - 9 months 3.60    3.75    3.92
BNZ Term PIE - 120 days 2.35    -    -
BNZ Term PIE - 150 days 2.40    3.38    3.53
BNZ Term PIE - 5 years 2.60    3.86    4.04
BNZ Term PIE - 2 years 2.60    3.91    4.09
BNZ Term PIE - 18 months 2.60    3.65    3.81
BNZ Term PIE - 12 months 2.70    3.38    3.53
BNZ Term PIE - 9 months 2.75    3.44    3.60
BNZ Term PIE - 6 months 2.75    3.75    3.92
BNZ Term PIE - 90 days 1.90    2.72    2.85
Co-operative Bank PIE Term Fund - 6 months 3.40    -    -
Heartland Bank Term Deposit PIE - 12 months 3.20    3.53    3.69
Heartland Bank Term Deposit PIE - 6 months 3.15    3.43    3.58
Heartland Bank Term Deposit PIE - 9 months 3.15    3.85    4.02
Heartland Bank Term Deposit PIE - 18 months 3.20    -    -
Heartland Bank Term Deposit PIE - 2 years 3.25    3.43    3.58
Heartland Bank Term Deposit PIE - 5 years 3.50    3.85    4.02
Kiwibank Term Deposit Fund - 90 days 2.65    2.72    2.82
Kiwibank Term Deposit Fund - 6 months 3.40    3.49    3.65
Kiwibank Term Deposit Fund - 12 months 3.50    3.39    3.55
Kiwibank Term Deposit Fund - 150 days 3.15    3.65    3.81
Kiwibank Term Deposit Fund - 120 days 2.95    3.03    3.17
Kiwibank Term Deposit Fund - 9 months 3.40    3.49    3.65
Westpac Term PIE Fund - 150 days 2.60    2.88    3.00
Westpac Term PIE Fund - 120 days 2.40    3.38    3.53
Westpac Term PIE Fund - 18 months 2.70    3.29    3.43
Westpac Term PIE Fund - 12 months 2.70    3.49    3.65
Westpac Term PIE Fund - 6 months 2.80    3.44    3.60
Westpac Term PIE Fund - 9 months 2.75    3.17    3.32
Westpac Term PIE Fund - 90 days 2.15    2.56    2.67
Westpac Term PIE Fund - 2 years 2.70    3.79    3.96
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com