Kiwisavers undeterred by credit squeeze

Monday, 06 October 2008

Despite global financial market turmoil more New Zealanders understand KiwiSaver and are using it to save for their retirement, a new survey shows.

Fifty percent of those who responded to the AMP SuperWatch survey in August said they were saving for their retirement with KiwiSaver, up from 41 percent in February.

The number of people confused about KiwiSaver fell from 15 percent in February to 9 percent with just 20 percent needing further advice before joining KiwiSaver, down from 42 percent.

Most of those surveyed were in the appropriate risk level.

AMP capital investors head of investment strategy Leo Krippner said given the benefits of KiwiSaver it was not surprising to see more New Zealanders signing up.

KiwiSavers confident in their KiwiSaver investment fund choice dropped from 77 percent in February to 67 percent.

"KiwiSavers may understandably be a little nervous about markets at present, but it's good to see they intend to stick with their choice nevertheless.

"Over time, we expect people to become more knowledgeable about markets and look to maximise their KiwiSaver investment by ensuring their fund choice best reflects their personal situation."

More parents are joining up their children with 15 percent having done so and 22 percent saying they planned to in the next year.

"I expect this number to grow once more parents realise they can join their children with no contribution required, and the $1000 kick-start can compound in the child's KiwiSaver account to a tidy sum by the time they reach 18 and can begin managing it themselves," Dr Krippner said.

"KiwiSaver is also a great way for children to learn about saving and investing, which parents surveyed believe is very important."

The survey showed a decrease in people saving through managed funds or unit trusts and an increase in people investing directly in bank or term deposits to save for retirement.

The AMP SuperWatch survey of 500 people over the age of 18 but not retired is undertaken twice a year and is conducted by Colmar Brunton.

NZPA