• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to secondary sidebar
  • Skip to footer
  • Subscribe
  • Twitter
  • RSS Feed

Investment News NZ

Investment News provides financial advisers news stories from the financial industry in New Zealand. Subscribe to our free weekly newsletter.

  • Home
  • News
  • Kiwisaver
  • Subscribe
  • About
  • Advertise
  • Contact
You are here: Home / Investment News / Age-related changes hit scheme stats, FMA finds

Age-related changes hit scheme stats, FMA finds

October 5, 2020

Liam Mason: FMA director regulation

It’s official: KiwiSaver is getting older.

New data from the Financial Markets Authority (FMA) shows the KiwiSaver membership age skewed upwards over the 12 months ending March 31.

According to the FMA figures, the proportion of KiwiSaver members aged 66 and above jumped by 12 per cent in the latest annual period to almost 130,000 as at the end of March.

Liam Mason, FMA director regulation, said the rise in the post 65 bracket could suggest new rules allowing older New Zealanders to join KiwiSaver were having an effect.

Until last year, those aged over 65 were prohibited from joining KiwiSaver but existing members could remain in the scheme after reaching the retirement age.

KiwiSaver members are also able to withdraw their savings once they turn 65 and about 20,000 chose to during the 12 months ending March 31.

However, with term deposit rates sinking below 2 per cent, members past retirement age might also be encouraged to keep their funds working harder in KiwiSaver.

Whatever the reason for the spike in retiree members – Mason said the FMA had no data yet on those aged over 65 joining KiwiSaver – the average member age has also increased along with the shrinking under-18 cohort.

Just-released Inland Revenue Department (IRD) statistics, show the under-18 KiwiSaver population fell more than 20,000 in the 12 months to June to reach 281,000: at its peak five years previously the same figure stood at almost 370,000. The-then National-led government removed the $1,000 kick-start payment for all new members in 2015 while simultaneously cutting the annual state KiwiSaver top-up (of a maximum $521) for those aged under-18.

Aside from the age-related trends, the FMA 2020 annual KiwiSaver report released last week also highlighted a 54 per cent spike in intra-fund switching behaviour – sparked by COVID-19 market panic in March – and a slight decrease in transfers between schemes.

During the 12-month period over 250,000 members switched investment funds within their scheme, the FMA report shows, while about 2,100 members made five or more fund changes over the year.

Mason said in a release: “We have acknowledged the efforts providers made to support their customers through the heightened period of volatility. We’re keen to see providers continue this level of engagement and encourage more informed decisions about switching funds and understanding market volatility.”

Over the latest financial year, the number of members transferring between rival KiwiSaver schemes fell to about 127,000, down from close to 145,000 in the previous reporting period, according to the IRD statistics.

Mason said the FMA report also picked up a slight decline in fees – as noted in the recent Investment News NZ ‘KiwiSaver the 13th’ study – but the regulator was pushing for further reductions as scale built in the system.

“Some administration fees came down over the year but there wasn’t much reduction in management fees,” he said.

The FMA published a ‘value for money’ analysis earlier this year that found no relation between fees and active and passive investment styles in KiwiSaver.

“We were told to expect that active managers would charge more than passive – but we didn’t see that,” Mason said.

He said the FMA would release guidance on passive and active management for KiwiSaver providers soon. The regulator was also working on a guide to lay down responsible investment (and related terms) disclosure standards in a bid to fight so-called ‘green-washing’.

“That’s very close to release,” Mason said.

 

Print Friendly, PDF & Email
Twitter0
LinkedIn0
Google+0
Facebook0

Read More » Investment News

Recent articles

  • KiwiWRAP lays down investment backing tracks January 24, 2021
  • Government to set eyes on PIEs as tax hike bites January 24, 2021
  • Venture fund hires short-term chief, refits board January 24, 2021
  • MJW finds KiwiSaver manager choice matters more at riskier end… January 24, 2021
  • … as weight gain spread among mid-level schemes January 24, 2021
  • NZX admin unit confirms old client for new platform January 24, 2021
  • NZ Super adjusts dials on reference portfolio as risk-return gauge edges up January 24, 2021
  • State Street wins Perpetual custody job January 24, 2021
  • New future-facing FAP compliance firm fronts up January 24, 2021

Primary Sidebar

WEEKLY NEWSLETTER

Sign up here to receive our weekly newsletter.
Learn More »

Most Recent Investment News

KiwiWRAP lays down investment backing tracks

January 24, 2021

Government to set eyes on PIEs as tax hike bites

January 24, 2021

Venture fund hires short-term chief, refits board

January 24, 2021

MJW finds KiwiSaver manager choice matters more at riskier end…

January 24, 2021

… as weight gain spread among mid-level schemes

January 24, 2021

Search by Keyword

Investment News

  • KiwiWRAP lays down investment backing tracks January 24, 2021
  • Government to set eyes on PIEs as tax hike bites January 24, 2021
  • Venture fund hires short-term chief, refits board January 24, 2021
  • MJW finds KiwiSaver manager choice matters more at riskier end… January 24, 2021
  • … as weight gain spread among mid-level schemes January 24, 2021
  • NZX admin unit confirms old client for new platform January 24, 2021
  • NZ Super adjusts dials on reference portfolio as risk-return gauge edges up January 24, 2021
  • State Street wins Perpetual custody job January 24, 2021
  • New future-facing FAP compliance firm fronts up January 24, 2021
  • How to fit ESG processes into UN’s sustainability goals January 24, 2021

Investment News Archive

Most Popular Articles

  • NZ share-trading splurge could trigger tax alarms… posted on October 5, 2020
  • Westpac NZ flags retail advice sale to Forsyth Barr posted on October 19, 2020
  • The horror year in technicolour: free KiwiSaver 13 report released posted on September 30, 2020
  • Flint set to spark platform competition posted on August 17, 2020
  • Four to the core: Smartshares to expand, rearrange and reprice ETFs posted on June 22, 2020
  • Kitset KiwiSaver scheme set to unwrap in spring posted on April 27, 2020
  • Funds eye bargains, self-shoppers hoard cash, KiwiSavers turn conservative posted on March 15, 2020
  • AMP Capital NZ chief quits amid equities exodus offshore posted on August 28, 2020

Sponosored Content

David-Boyle

On the industry play-list: four chart-topping regulations for 2021

David-Boyle

Charge of the lite (advice) brigade

Nathan Field

Pandemic Baby Boom a Bust

Star-date 2020: it’s inflation Jim but not as we know it

Quick-links to Popular News

  • FAP Compliance
  • Coronavirus
  • New Appointments
  • Financial Markets Authority (FMA)
  • Kiwisaver
  • Climate Change
  • Crypto Currency
  • Blockchain
  • Insurance

Secondary Sidebar

Recent News

  • KiwiWRAP lays down investment backing tracks January 24, 2021
  • Government to set eyes on PIEs as tax hike bites January 24, 2021
  • Venture fund hires short-term chief, refits board January 24, 2021
  • MJW finds KiwiSaver manager choice matters more at riskier end… January 24, 2021
  • … as weight gain spread among mid-level schemes January 24, 2021
  • NZX admin unit confirms old client for new platform January 24, 2021
  • NZ Super adjusts dials on reference portfolio as risk-return gauge edges up January 24, 2021
  • State Street wins Perpetual custody job January 24, 2021
  • New future-facing FAP compliance firm fronts up January 24, 2021
  • How to fit ESG processes into UN’s sustainability goals January 24, 2021

Footer

Copyright ©2020 InvestmentNews.co.nz — All Rights Reserved ·— Terms & Conditions