The KiwiSaver experience

We asked ordinary KiwiSaver investors about their experience so far. Most had selected their scheme provider or plan (or both) based on personal preference or advice from others.

But the majority seemed completely apathetic as to what returns they were making or the fees they were being charged. Only one knew the fees being charged.

Few knew or seemed the slightest bit interested in the returns they were getting - as one of them said: "It's very easy to be blasé about your KiwiSaver investment. Once you get used to receiving 4 percent less in your pay, it's easy to forget that you have an investment to monitor."

If this level of apathy is representative of New Zealand's KiwiSaver population, we can only repeat the adage that a fool and his money are easily parted.

What's been said in the media

"Conservative funds will be ditched for higher-risk options as KiwiSavers adopt a more hands-on approach to investing in the scheme, say major providers". NZ Herald 9 May 2008.

We note: Higher-risk "growth" funds with many providers have suffered the biggest losses to date. Many with KiwiSavings in these funds have lost around 10 percent, while others have lost as much as 20 percent or more.

"Knowledge of the public as to who their provider is is minimal, absolutely minimal. This is a real concern. You might as well put your financial future in the hands of an investment company whose name you pull out of a hat." Gareth Morgan, NZ Herald 9 May 2008.

We note: Around 50 percent of KiwiSaver investors have taken a default provider and default scheme.