tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Friday, July 1st, 12:57PM

Investments

rss
Latest Headlines

'Retirees' stick with KiwiSaver, AMP says

More people over the pension age are choosing to keep their KiwiSaver funds active, AMP Wealth Management says.

Monday, August 3rd 2020, 5:00AM

Blair Vernon

“We’re seeing fewer KiwiSaver clients withdrawing all their funds when they reach retirement age,” chief executive Blair Vernon said.

“In fact, nearly 7% less than this time last year, representing about $4 million in KiwiSaver investments.”

Vernon said low interest rates were one possible reason for the trend, but said KiwiSaver offered more than a better return.

“Another compelling feature of KiwiSaver for members aged 65-plus compared to some other savings products is the ability to withdraw partial amounts from your funds whenever you like, or need, without incurring any penalty. This can be especially important for this demographic as their needs change.”

The Financial Markets Authority’s annual profile of KiwiSaver members showed an 11% increase in members aged in their 70s in the last two years.

A survey by AMP revealed that more than 25% of respondents expected to still need to be working full-time when they reached 65 and more than 40% thought they would be working part-time.

Financial adviser Michael Cave said the current cohort of KiwiSaver members who had recently retired were most likely very pleasantly surprised at having an unexpected nest egg.

“We know that an increasing number of older Kiwis are struggling to save financially and many hadn’t counted on getting to retirement having built up a good level of savings, but KiwiSaver is helping to change that.

“For those aged 65-plus, the fact that their KiwiSaver money is currently working harder for them compared to bank deposits for example, while also allowing greater flexibility, means it makes absolute sense for them to stay in KiwiSaver,” he said.

AMP pays its own staff their employer contributions at a rate of 12% past 65, although it is not a requirement.

Tags: AMP KiwiSaver retirement

« Is default status a gravy train?KiwiSaver sector slams National proposal »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • Controversial and coming soon, but how broad is COFI’s reach?
    “The slow dismantling of the advice industry bought to you by those who missed the straw that broke the camel's back....”
    20 hours ago by Good Hamish
  • Conduct laws finally real
    “He (Clark) said reviews by the Reserve Bank and the FMA had found banks and insurers lacked focus on good customer outcomes,...”
    1 day ago by Amused
  • OBITUARY: Controversial adviser dies at 80
    “Condolences to family and friends. Good that a lot of the very positive work Roger undertook has been called out....”
    1 day ago by jeff m
  • OBITUARY: Controversial adviser dies at 80
    “Roger Moses was a true pioneer in the financial planning world. As the say, you can easily spot your pioneers… they have...”
    2 days ago by Managing Partner & Dean
  • Pathfinder big winner
    “Well done Peter. I know, as most others do, you are very passionate about ethical investing. This is a well deserved award...”
    2 days ago by John Milner
Subscribe Now

News and information about KiwiSaver

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 5.95 4.85 5.35 5.65
ANZ 5.94 5.95 6.40 6.59
ANZ Blueprint to Build - - - -
ANZ Special - 5.35 5.80 5.99
ASB Bank 5.85 5.35 5.80 5.99
Avanti Finance 5.95 - - -
Basecorp Finance 6.95 - - -
Bluestone 5.89 7.49 8.09 8.19
BNZ - Classic - 5.35 5.69 5.99
BNZ - Mortgage One 5.94 - - -
BNZ - Rapid Repay 5.94 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Std, FlyBuys 5.94 5.95 6.29 6.59
BNZ - TotalMoney 5.94 - - -
CFML Loans 6.45 - - -
China Construction Bank 5.50 5.40 6.14 6.40
China Construction Bank Special - 4.45 5.19 5.45
Co-operative Bank - First Home Special - 4.75 - -
Co-operative Bank - Owner Occ 5.85 4.85 5.35 5.65
Co-operative Bank - Standard 5.85 5.35 5.85 6.15
Credit Union Auckland 5.95 - - -
First Credit Union Special 5.85 ▲5.35 ▲5.85 -
Heartland Bank - Online 4.10 ▲4.90 ▲5.29 ▲5.59
Lender Flt 1yr 2yr 3yr
Heretaunga Building Society 6.10 ▲5.35 ▲5.80 -
HSBC Premier 5.89 4.39 5.15 5.39
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 5.25 4.39 5.09 5.45
Kainga Ora 5.43 4.57 5.58 5.85
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 5.50 ▲6.19 ▲6.69 ▲6.79
Kiwibank - Offset 5.50 - - -
Kiwibank Special 5.00 ▲5.19 ▲5.69 ▲5.89
Liberty 4.84 - - -
Lender Flt 1yr 2yr 3yr
Nelson Building Society 6.45 5.55 6.15 -
Pepper Money 4.49 - - -
Resimac 6.19 5.60 6.16 6.29
SBS Bank 5.79 ▲5.65 ▲6.09 ▲6.19
SBS Bank Special - ▲5.15 ▲5.59 ▲5.69
Select Home Loans 4.09 4.29 4.86 5.09
TSB Bank ▲6.30 ▲5.65 5.79 ▲6.45
TSB Special ▲5.50 ▲4.85 4.99 ▲5.65
Unity 5.65 4.95 5.55 -
Wairarapa Building Society 5.74 4.95 5.75 -
Westpac 5.94 5.95 6.29 6.59
Lender Flt 1yr 2yr 3yr
Westpac - Offset 5.94 - - -
Westpac Special - 5.35 5.69 5.99
Median 5.87 5.35 5.77 5.99

Last updated: 30 June 2022 9:19am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com