KiwiSaver member satisfaction has risen significantly over the past two years, although cost-of-living pressures are reducing retirement savings balances, new research from Consumer NZ shows.
Overall satisfaction with KiwiSaver providers has increased to 62%, up 10 percentage points over the past two years, with five providers outperforming the industry average.
However, ongoing cost-of-living pressures are taking a toll.
16% of KiwiSaver members either suspended contributions or made a hardship withdrawal over the past year, with younger members aged 18–39 and households earning under $50,000 most affected.
According to Consumer NZ chief executive Jon Duffy, “When young people have to dip into their KiwiSaver just to get by, they’re borrowing from their future selves.”
“Every dollar lost today is a dollar that can’t compound for their retirement.”
Duffy said the research also found that many members stay in default KiwiSaver settings without checking whether their fund matches their financial goals and values. He stressed that KiwiSaver should not be something people simply set and forget.
“Only 31% of people chose their scheme independently, with most using the default. That’s a big red flag, especially when fees, risk level and long-term returns can add up to a substantial difference over a member’s working life.”
Consumer NZ encourages KiwiSaver members to review their provider, the fund they are in, the fees they are paying, and whether their settings still suit their current circumstances.
Duffy said the idea that switching KiwiSaver providers is difficult is unfounded, noting the process is simple and straightforward. He encourages all KiwiSaver members to shop around.
“You could be paying too much in fees or missing out on better returns. The more people switch, the healthier the competition – and that’s better for consumers.”