• Financial ‘health checks’ should be provided to members at various stages to ensure they continue to meet their retirement goals and know how to use those funds when they reach retirement
It can be hard to work out how much you will have saved for retirement. This was reflected in our research when only 35 per cent of respondents under 65 said they had worked out what their KiwiSaver balance and other savings might be by the time they retire.
When the remaining 65 per cent were asked why they hadn’t done this, 35 per cent said there was too much uncertainty, 27 per cent said they did not feel they needed to, 24 per cent did not care and 22 per cent said it is too hard or they don’t know how.
To tackle this, ANZ Investments believes providers should grant a free service to investors at specific life stages to help them identify their savings and retirement goals.
Health checks, tools and resources should also be provided to groups most in need of support, such as non-contributing members, women and those nearing the retirement age.
Just over half of poll respondents agreed it should be compulsory for KiwiSaver providers to give members ‘free financial health checks’ to see if they are on track for their future retirement (e.g. at 40, 50 or 60 years of age).
It’s also essential to ensure members can decide the best way to ensure their KiwiSaver savings last them through their retirement.
ANZ Investments believes providers should encourage members approaching retirement to set a plan or seek advice for how they will draw upon their savings. Sixty two per cent of respondents said they would like their provider to give them access to free professional advice on the options for withdrawing funds.