ZB

Big banks attract lowest KiwiSaver satisfaction scores - survey

Author
Tamsyn Parker, NZ Herald,
Publish Date
Mon, 13 Jun 2022, 11:17am
Photo / File
Photo / File

Big banks attract lowest KiwiSaver satisfaction scores - survey

Author
Tamsyn Parker, NZ Herald,
Publish Date
Mon, 13 Jun 2022, 11:17am

Bank-run KiwiSaver schemes have attracted the lowest satisfaction ratings in research undertaken by Consumer New Zealand.

ANZ and ASB - the two largest providers in New Zealand - both came in last place with a score of 47 per cent while Westpac rated 54 per cent.

BNZ was the only major bank to rate above average scoring 64 per cent but it rated below average for return on investment.

Consumer chief executive Jon Duffy said it had been a tough year for KiwiSaver members as they had watched their balances go down due to market volatility and satisfaction ratings had taken a hit.

"Industry wide, KiwiSavers are reporting a lacking transparency about fund performance and fees they're paying.

"Non-bank funds are standing out when it comes to performance, so the major banks do have some work to do to lift their standards and come up to speed."

Simplicity was rate the top fund with 77 per cent satisfaction score while Milford Asset Management was tied for second place with Generate on 67 per cent.

Duffy said the research also showed information gaps with just 19 per cent feeling they would have enough in their account when they retired.

Three-quarters of those surveyed didn't know what they paid in fees and 60 per cent didn't know how well their fund was doing compared to others.

Only one in four felt it was easy to compare KiwiSaver providers.

Members can undertake a comparison of fund on their fees and the performance of their fund on the sorted Smart Investor tool.

Annual member statements which have recently been either posted or emailed to members also contain information on fees, performance of the fund and have an estimate of what a person will have in their KiwiSaver account by age 65 at their current rate of savings.

The Sorted website also has calculators which can help people work out if they are on track saving for their retirement.

The Consumer research also found 45 per cent of those surveyed said a fund which provided both good returns and invests responsibly were equally important.

A further 13 per cent wanted a fund that invested responsibly even if it provided a lower return.

Most of those questioned were unsure if their funds invested in companies involved in gambling, tobacco and weapons.

KiwiSaver members can find out if their fund is invested ethically by going to comparison siteMindful Money.