SuperRatings ranks KiwiSaver schemes

SuperRatings has released its top rated KiwiSaver schemes for 2019, and an analysis of the schemes that provide the highest value on a net benefit basis.

Eight providers were awarded the platinum rating for 2019.

ASB, Fisher Funds. Kiwi Wealth, Mercer, Milford, the NZ Defence Force KiwiSaver scheme, OneAnswer and Westpac received the rating.

SuperRatings’ assessment criteria considers five key factors, including investments, fees, member servicing, scheme administration and governance. Schemes awarded a platinum rating are balanced across all key assessment criteria.

“The discussion about fees is extremely prevalent in the New Zealand market," said SuperRatings executive director Kirby Rappell.

"While this is important, we believe that the net benefit (total earnings less all fees and taxes) is the key factor that contributes to overall value for KiwiSaver members.

“We have observed a number of schemes improve their outcomes over the year. There is a stronger focus by some providers on improving engagement with KiwiSaver members, but there remains a lot of work to do in this area. The average KiwiSaver member now has over $17,000 in their account and this will also assist people to more closely monitor these savings.”

SuperRatings analysis showed schemes that provided the highest net benefit outcomes for members were not necessarily those that charge the lowest fees; and net benefit outcomes for growth funds were significantly higher than that of conservative funds.

Milford topped the balanced and growth funds for net benefits over the past seven years. Aon was top of conservative options.