KiwiSaver savers 'more confident'
The survey showed that 51 percent of those who are regular contributors to KiwiSaver were confident of achieving their retirement savings goals. However, when savers stopped contributing, this fell dramatically - to 29 percent.
The survey asked whether respondents were on a KiwiSaver contributions holiday or had stopped paying into their KiwiSaver account.
"We wanted to find out the effect that maintaining your savings habit was having on people’s confidence," said John Body, Managing Director ANZ Wealth, New Zealand.
"It’s encouraging to see that KiwiSaver appears to be making a difference to people’s confidence about achieving their preferred retirement income.
"But it’s concerning that such a large confidence gap is emerging between those who are sticking to their savings plans and those who have stopped paying into their KiwiSaver account," Mr Body said.
Overall confidence is measured among those who are saving, planning to save in the future or who expect to have an additional source of income in retirement above New Zealand Superannuation.
The quarterly survey asked 1,169 people, in February and March 2013, if they were saving for retirement. The 1,059 people that stated they are saving, plan to save, or who expect to have an additional source of income in retirement, were asked how much weekly income they would like in addition to New Zealand Superannuation when they retire, and how confident they were about reaching their savings goal.
The survey continues to show there are pockets of confidence pushing through the 50 percent barrier, but this is mostly among men and those with higher incomes.
Mr Body said: "If you are in your twenties or thirties and take a five-year gap from paying into KiwiSaver then the impact on your final lump sum at retirement can run into tens of thousands of dollars. It could mean about 10 percent less in your nest egg."
At this time of year KiwiSaver members will be opening their annual statements and this is a good moment for people to take stock of their retirement savings plan. ANZ calculates that people who have been in the scheme since it started in 2007, earning around $800 per week, could have accumulated about $18,000 by now.
Mr Body said: "When you consider what you could have achieved already or what you have missed out on by not joining KiwiSaver, then it’s a good time to review the options available to you to help you reach your savings goals." comments powered by Disqus