Changes to New Zealand’s superannuation scheme, KiwiSaver, including improved contribution rates and new options for those aged over 65 are paying dividends, according to the New Zealand Financial Services Council (NZFSC).
The NZFSC pointed to the fact that the latest figures showed that KiwiSaver assets had grown to nearly $58.53 billion with the KiwiSaver pool growing by 16.5 per cent in the most recent quarter.
Commenting on the situation, NZFSC chief executive, Richard Klipin said the growth was very encouraging.
“Recent changes introduced by the government, including the changes in contribution rates, new options for over 65’s and savings suspension are all contributing to improving the scheme,” he said. “The figures show average individual KiwiSaver balances growing to just under $19,250, up around $500 over the quarter. These additional savings combined with a sustained period of market growth in New Zealand means now is the time for Kiwis to save for their future.”
“Financial Services is a growing sector in New Zealand and the industry is charged with supporting New Zealanders to build, manage and protect their long-term wealth. There is strong competition in the sector as providers look to deliver better value for consumers,” Klipin said.
“With other changes in the pipeline, such as the KiwiSaver Default Provider Review and CFFC Review of Retirement Income Policies coming later in 2019, these results are encouraging, as they show the individual wealth of those in KiwiSaver is growing.”
