Labour has floated the idea of forcing KiwiSavers to keep their money in New Zealand, as well as making the scheme compulsory.

Labour’s finance spokesman David Parker raised the possibility of preventing KiwiSaver funds being moved overseas in an interview on TV3 programme The Nation on the weekend.

He mentioned it as an option, while reiterating Labour’s election policies of compulsory KiwiSaver, a capital gains tax and a gradual increase in the retirement age.

“On the savings front, we’re going to have to consider whether we make our savings sticky, rather than having open borders – people being able to take their savings pool with them to Australia,” Parker said.

“Someone suggested to me the other day – a senior business person – that we’re going to actually have to have a closed system that says once you get universal savings you actually can’t take them with you to Australia,” he said.

“We’ve got such a problem now between income differentials between New Zealand and Australia that we’re going to have to do better. We’re actually also going to have to move on inequality, you know, inequality in New Zealand is rising to atrocious levels, and a capital gains tax helps fix that as well.”

New Zealanders who move overseas are currently allowed to apply to pull their money out of KiwiSaver, except for government tax credits; however, there is a minimum 12-month wait before they get their money.

Those moving to Australia – where saving is compulsory – should soon be able to transfer their funds to one of the super schemes over there, once Australia gets around to signing the Trans-Tasman Portability Agreement.

New Zealand signed the agreement in 2010.

Financial advisers are losing popularity as a source of information for KiwiSaver members, who prefer to go to product providers or their employers, according to new research.

The Mercer KiwiSaver Sentiment Index Study found only 19% of respondents preferred to go a financial adviser for information about the scheme, down from 23% in the last study in 2009 and 33% when the first study was conducted in 2007 just before KiwiSaver was launched.

Nearly half (49%) chose their KiwiSaver provider as a preferred source of information, while one in four respondents preferred to go to their employer or HR manager.

However, the latter figure is down from 48% in 2007 and 37% in 2009 (the numbers add up to more than 100% as respondents can choose more than one answer).

Financial advisers were just behind government sources such as the IRD (20%, down from 40% in 2009), slightly ahead of family (17%) and well ahead of the media, which only 5% of people chose as a preferred source.

Mercer’s Elyssia Silberstein, who oversaw the research, said respondents weren’t asked why they preferred a particular source.

“I would expect that there’s a lot more information and communication available now.  Financial advisers have been used in the past but with the government playing an active role [in providing information] perhaps the perceived need for financial advisers has diminished over time.”

Martin Lewington, head of Mercer New Zealand, noted that the drop-off had taken place at the same time the new regulatory regime for advisers was introduced.

“Hopefully in the 2014 survey KiwiSavers will have seen the benefits in the new regulatory environment and we will have seen an uptick in that.”

He noted that although 73% of respondents said in 2007 before the scheme’s launch that they planned to pick their own provider, in the latest survey only 58% had actually done so, with the rest allowing their decision to be made by the IRD or their employer.

The study also found opposition to KiwiSaver had increased, with 30% actively against it compared to 22% in 2009; those actively against it tended to be over 55, owned their own home and had children who weren’t enrolled in KiwiSaver.

Lewington said the increase in opposition had implications for the debate on whether to make the scheme compulsory.

Financial advisers are losing popularity as a source of information for KiwiSaver members, who prefer to go to product providers or their employers, according to new research.

The Mercer KiwiSaver Sentiment Index Study found only 19% of respondents preferred to go a financial adviser for information about the scheme, down from 23% in the last study in 2009 and 33% when the first study was conducted in 2007 just before KiwiSaver was launched.

Nearly half (49%) chose their KiwiSaver provider as a preferred source of information, while one in four respondents preferred to go to their employer or HR manager.

However, the latter figure is down from 48% in 2007 and 37% in 2009 (the numbers add up to more than 100% as respondents can choose more than one answer).

Financial advisers were just behind government sources such as the IRD (20%, down from 40% in 2009), slightly ahead of family (17%) and well ahead of the media, which only 5% of people chose as a preferred source.

Mercer’s Elyssia Silberstein, who oversaw the research, said respondents weren’t asked why they preferred a particular source.

“I would expect that there’s a lot more information and communication available now.  Financial advisers have been used in the past but with the government playing an active role [in providing information] perhaps the perceived need for financial advisers has diminished over time.”

Martin Lewington, head of Mercer New Zealand, noted that the drop-off had taken place at the same time the new regulatory regime for advisers was introduced.

“Hopefully in the 2014 survey KiwiSavers will have seen the benefits in the new regulatory environment and we will have seen an uptick in that.”

He noted that although 73% of respondents said in 2007 before the scheme’s launch that they planned to pick their own provider, in the latest survey only 58% had actually done so, with the rest allowing their decision to be made by the IRD or their employer.

The study also found opposition to KiwiSaver had increased, with 30% actively against it compared to 22% in 2009; those actively against it tended to be over 55, owned their own home and had children who weren’t enrolled in KiwiSaver.

Lewington said the increase in opposition had implications for the debate on whether to make the scheme compulsory.

Financial advisers are losing popularity as a source of information for KiwiSaver members, who prefer to go to product providers or their employers, according to new research.

The Mercer KiwiSaver Sentiment Index Study found only 19% of respondents preferred to go a financial adviser for information about the scheme, down from 23% in the last study in 2009 and 33% when the first study was conducted in 2007 just before KiwiSaver was launched.

Nearly half (49%) chose their KiwiSaver provider as a preferred source of information, while one in four respondents preferred to go to their employer or HR manager.

However, the latter figure is down from 48% in 2007 and 37% in 2009 (the numbers add up to more than 100% as respondents can choose more than one answer).

Financial advisers were just behind government sources such as the IRD (20%, down from 40% in 2009), slightly ahead of family (17%) and well ahead of the media, which only 5% of people chose as a preferred source.

Mercer’s Elyssia Silberstein, who oversaw the research, said respondents weren’t asked why they preferred a particular source.

“I would expect that there’s a lot more information and communication available now.  Financial advisers have been used in the past but with the government playing an active role [in providing information] perhaps the perceived need for financial advisers has diminished over time.”

Martin Lewington, head of Mercer New Zealand, noted that the drop-off had taken place at the same time the new regulatory regime for advisers was introduced.

“Hopefully in the 2014 survey KiwiSavers will have seen the benefits in the new regulatory environment and we will have seen an uptick in that.”

He noted that although 73% of respondents said in 2007 before the scheme’s launch that they planned to pick their own provider, in the latest survey only 58% had actually done so, with the rest allowing their decision to be made by the IRD or their employer.

The study also found opposition to KiwiSaver had increased, with 30% actively against it compared to 22% in 2009; those actively against it tended to be over 55, owned their own home and had children who weren’t enrolled in KiwiSaver.

Lewington said the increase in opposition had implications for the debate on whether to make the scheme compulsory.