Wellington, June 7, 2017
The Government has today released its response to the Retirement Commissioner’s review on retirement income policies.
Earlier this year, the Government announced key changes to superannuation settings which are in line with the Commissioner’s recommendation.
The review also addressed other key areas including KiwiSaver settings, the ageing workforce, and assistance to vulnerable groups in retirement.
We have already taken action on some of these recommendations. Of particular note is that from 2018 all KiwiSaver providers must disclose the total fees they charge their investors in dollars.
Following these improvements, I have decided that KiwiSaver annual statements will now also include projected retirement savings and income figures.
We want New Zealanders to be able to ‘project forward’ and understand how their current KiwiSaver contributions are likely to translate into retirement savings. These are complicated calculations and the more we can do to assist people with these, the better.
We are committed to raising levels of financial capability to ensure more New Zealanders have financial security in retirement.
My hope is that people will have a better understanding of their retirement savings after receiving the projected figures and this will lead them to make more informed decisions to positively influence their savings.
Several other changes to KiwiSaver settings are being progressed, which are likely to result in people being able to contribute more to their KiwiSaver accounts and have a positive impact on people’s retirement savings.
The Government’s response and a list of all recommendations can be found here: http://www.mbie.govt.nz/info-services/business/business-law/agencies-we-monitor/commission-for-financial-capability/retirement-commissioners-review-of-retirement-income-policies.
Jacqui Dean is Commerce and Consumer Affairs Minister of New Zealand.