- So far, KiwiSaver has been undeterred from the effects of market volatility.
- From December, more than 300K KiwiSaver members default conservative fund would shift towards a balanced fund.
The pandemic has caused havoc across the world but did not impact KiwiSaver’s growth.
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Growth in funds
As per the latest survey (FSC’s retirement savings scheme survey), it was evident that the funds have risen by above 20% to stand at NZ$90.8 billion across the one-year period. Also, the membership of people grew to 3 million.
For the year closed September 2021, contributions stood at NZ$6.32 billion, with about a third of that taking place in the last quarter, with average balances growing to NZ$27,858.
What will change from December 2021?
Beginning 1 December, more than 300K KiwiSaver members default conservative fund would shift towards a balanced fund, which means that the risk profile of the investment would rise. Here, the investment balance is subject to market volatility, which might not be suitable to a few individuals.
As per the KiwiSaver default changes, the default providers would go down to 6. While the default members registered with AMP, ASB, etc would be shifted to one of the new providers.
Richard Kiplin, Financial Services Council’s CEO, opined that KiwiSaver had played a significant role in how Kiwis managed their wealth, save money, and arrange for their retirement. He further added that actively taking an early interest in KiwiSaver would prove beneficial to the individuals.