25 Dec 2012

KiwiSaver investment changes mooted

7:45 am on 25 December 2012

The Government is looking at possible changes to the way some KiwiSaver funds are automatically invested.

It is reviewing the default provider arrangements which automatically put funds into KiwiSaver's conservative investment option, unless people choose a different scheme.

KiwiSaver has more than two million members, and almost a quarter of them are in a default scheme which the Government says was designed as a short term measure.

It is aimed at reducing the likelihood of loss and as a result, the default position's investment approach has been conservative, rather than a longer term focus which could maximise retirement income.

Now that KiwiSaver is the central pillar of many people's retirement savings, the Government says it's a good time to look at how the default provider arrangements can be improved.