KiwiSaver providers are being urged to clearly explain the scheme's complex concepts and terminology to members, especially if enrolment becomes automatic.
If it is re-elected, National will automatically enrol all workers in the savings scheme in 2014, so long as the Budget has returned to surplus.
But Workbase, a workforce literacy and numeracy company, says many people lack the skills and knowledge to understand the concepts, terminology and complex information needed to make choices about KiwiSaver.
Chief executive Katherine Percy says research suggests more than half of KiwiSaver members know little about the scheme they are in, and most don't realise there is no Government guarantee.
She says information is pitched assuming people have a relatively high level of starting knowledge which is not accurate.
Ms Percy says there is a role for the default providers to give information in a way that more New Zealanders can understand.
But she says New Zealanders will have to be willing to invest some more time in building up their knowledge about financial services and improving their financial literacy.
Tower Investments chief executive Sam Stubbs says KiwiSaver providers are getting better at explaining concepts using simple terminology, but there's still more work to do.
He says the lack of financial literacy is because it's a technical business and the industry has done a poor job of putting complex concepts into plain English.
Mr Stubbs says New Zealanders are also generally not very comfortable discussing their investments.
He says the legislation requires providers talking to investors to use language that is precise, very descriptive and also provides depth.
Mr Stubbs says the trick is providing the information that must be provided, but summarising it, or putting it in a form that is more easily digestible.
He says most KiwiSaver scheme providers grapple with providing all the information that must be provided but putting it in a way that investors understand.
