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Women fall further behind in retirement savings race
Posted in Kiwisaver, Retirement, Savings on
New Zealand's retirement savings gender gap just keeps getting bigger, new research shows. ANZ said, on current savings patterns, women were likely to retire with almost $80,000 less in their KiwiSaver accounts than men. General manager of wealth products and marketing Ana-Marie Lockyer said it was disappointing to see women falling further behind in their retirement savings. She said the average balances of women members of ANZ's KiwiSaver scheme, the largest in the country, were 19 per cent lower than men's. Women had an average $13,333 compared to $16,527 for men. A year ago, women were only 15 per cent behind.
View moreFee debate welcomed
Posted in Kiwisaver on
The Commission for Financial Capability has welcomed fresh debate on the touchy subject of KiwiSaver fees after a new report suggested there was an "unhealthy focus" on fees - rather than the overall outcome delivered by various schemes. The Australian-based SuperRatings research house says that substantial improvements have been made over the past year in terms of member engagement and servicing, but chief executive Adam Gee says that "the race to the bottom on fees remains particularly concerning."
View morePerils of the passive strategy
Posted in Kiwisaver, Savings on
There has been a huge amount of media commentary on the relative merits of active versus passive investing, particularly in relation to KiwiSaver funds. Most media commentators, including Weekend Herald columnist Mary Holm, argue that passive KiwiSaver funds are better because they are cheaper. Holm maintains that active funds underperform passive managers on an after-fee basis, mainly based on United States research, and she repeatedly encourages individuals to invest through passive funds rather than active funds. But this debate should also include an assessment of fund managers as financial intermediaries. The argument should not be about fees only.
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SuperRatings Releases 2017 Kiwisaver Ratings
Posted in Kiwisaver on
SuperRatings has now released its formal 2017 ratings, awarding seven schemes its highest Platinum rating. Now in its fourth year of rating the KiwiSaver system, SuperRatings recognises that substantial improvements have been made over the year in terms of member engagement and servicing, albeit the challenging investment environment has resulted in subdued returns for many KiwiSaver members and the race to the bottom on fees remains particularly concerning.
View moreMembers may lose the ‘race to the bottom’ on fees, researcher warns
Posted in Kiwisaver, Savings on
A new analysis has debunked the assumption that low fees inevitably equate with better outcomes for KiwiSaver investors. In fact, the study, released by Australian research house SuperRatings last week, found there was “often an inverse relationship between fees and investment outcomes achieved by members”.
View moreKiwiSaver relief for quake-affected
Posted in Kiwisaver on
Commerce and Consumer Affairs Minister Paul Goldsmith has announced relief for KiwiSaver members who are suffering financial hardship following the November 14 earthquakes, by making it easier for them to withdraw their funds.
View moreDon't panic - your KiwiSaver will outlive Trump's presidency
Posted on
KiwiSaver investors are being urged not to panic in the face of wild swings on world financial markets, following Donald Trump's victory in the US presidential election. Wall Street gained ground this morning, after yesterday's selloff on the New Zealand, Australian and Asian markets. But the experts say the volatility is likely to last for months. The Commission for Financial Capability says investors should not lose sight of their long-term savings goals.
View moreAge appropriate KiwiSaver with 'life stages'
Posted in Kiwisaver on
Generate's new 'life stages growth' option has been featured in an article from Stuff. "By offering life stages growth we think we can meet a demand that is not currently being catered for. "We estimate a 30-year old using life stages growth will have approx 10 per cent more at retirement than ordinary life stages." "This could translate into tens of thousands of additional dollars by retirement."
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Social responsibility a rising priority for funds
Posted in Kiwisaver on
SRI is a generic term that combines the financial objectives of investors with environmental, social and governance (ESG) issues. This is based on the concept that companies which place a great deal of importance on ESG issues will achieve superior financial returns. The problem with implementing SRI is that we all have a different view of how the world can be improved. Many investors do not want to support certain products, including armaments, tobacco, alcohol and gambling facilities, while others are concerned about a number of broader issues including the impact of businesses on the environment and the widening gap between senior executive remuneration and wage earners.
View moreKiwiSaver guidelines needed
Posted in Kiwisaver on
Recent media reports could give the impression that KiwiSaver has major problems, particularly fee gouging and illegal investment strategies. KiwiSaver should be subject to media scrutiny but most of the recent commentary has been sensationalist and misguided. The retirement savings initiative has been a huge success, partly because individuals have personally contributed only $13.7 billion to a scheme that is now worth $35.1b according to Reserve Bank figures.
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