Another KiwiSaver fee calculator

The Retirement Commissioner has entered the KiwiSaver analysis market with a fee calculation tool.It says the tool will help people “with the complicated task of working out which KiwiSaver fund is most suitable for them.”

“Our independent estimate of KiwiSaver fees will help New Zealanders make a more informed decision on which KiwiSaver provider and fund to choose,” says Retirement Commissioner Diana Crossan.

The fees analysis was completed by actuaries Melville Jessup Weaver and reviewed by several KiwiSaver providers and independent experts.

One of those is Michael Littlewood, a director of KiwiSaver provider SuperLife. Littlewood went public recently bagging a site which competes with the commission’s one.

Crossan says estimated fees are only one thing people should look at when selecting KiwiSaver funds. Other factors include the level of risk (and associated return), service level and communication offered by the fund provider.

KiwiSaver numbers pass 380,000 in first six months

The number of New Zealanders signed up for KiwiSaver at the end of the scheme’s first six months is far more than was expected for its first year, announced Finance Minister Michael Cullen and Revenue Minister Peter Dunne.
Press Release

As at 31 December, 381,000 New Zealanders were actively saving for their retirement through KiwiSaver. That compares to an initial forecast of 276,000 by 1 July 2008.

“The verdict on KiwiSaver is in,” Cullen said. “New Zealanders want to save for a better retirement and they know KiwiSaver makes that easier than ever before.

“New Zealand has a savings problem. We were recently ranked 108 out of 131 countries for our national savings rate. If that poor performance were to continue the consequences for our economy and for our living standards in retirement would be significant.

“KiwiSaver will address imbalances in the economy, create a domestic pool of capital to help local business expand and succeed, and will lift living standards in retirement.”

“One of the things that is particularly exciting is the continued popularity of KiwiSaver among younger New Zealanders,” Peter Dunne said. “Over 55% of KiwiSavers are under 45 years old and over 20% are younger than 25 years old.

“Starting the savings habit early will mean that these young people will be able to generate very significant savings by the time they retire and in some cases will be able to use their savings to buy a first home.”

Crown payments to KiwiSaver scheme providers in December totalled $104 million. Overall more than $300 million has now been transferred since the scheme’s launch on 1 July 2007.