More KiwiSaver options wanted
Almost half of New Zealanders would like to increase their KiwiSaver contributions by 1% at a time that suits them, according to a new survey by ANZ.
Tuesday, June 14th 2016, 2:29PM
ANZ, New Zealand’s largest KiwiSaver provider, surveyed 2000 people, asking them whether they would like the option to increase their KiwiSaver contributions in the future.
A total 20% said they would definitely take up an opportunity to increase their KiwiSaver contributions by 1% at any time, while a further 27% were likely to take up this option.
The results come as the Commission For Financial Capability is considering potential changes to KiwiSaver, including the option of increasing and decreasing regular contributions.
Under current KiwiSaver rules, members can choose to contribute 3%, 4% or 8% of their pay to their KiwiSaver account.
ANZ general manager funds and insurance Ana-Marie Lockyer said anything that encouraged people to consider contributing more to their retirement savings - if they could afford to - was worth looking at.
“The key thing people are looking for is flexibility,” said Lockyer. “KiwiSaver is a 30-40 year savings commitment – people’s circumstances will change over this sort of time frame.
“Ideally, we would enable people to increase their contributions to KiwiSaver when they get a pay rise or pay down their debt.
“Equally, some people might prefer to reduce their contributions to 1% or 2% of their pay when money is tight.
“Currently the only option they have is to stop contributing to KiwiSaver altogether for a few years.”
Lockyer said more than 100,000 KiwiSaver members are currently on a contributions holiday and not contributing anything to KiwiSaver. More than 1 million KiwiSaver members did not contribute enough last year to qualify for the Government’s full Member Tax Credit.
“We estimate that New Zealanders missed out on $450 million in Member Tax Credits last year by not contributing enough.
“KiwiSaver members still have until June 30 to make sure they’ve contributed at least $1042 so they qualify for a $521 Member Tax Credit payment from the Government."
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