Nearly six years after KiwiSaver launched, there are now more than 2.1 million people in KiwiSaver schemes. The government raised the minimum contribution rate from 2% to 3% for both employees and employers, people have started using the first-home buyer benefit and KiwiSaver members are starting to see their balances grow.
An issue of concern recently raised is; there is a lot of movement between the scheme providers which is not very productive, some KiwiSaver members are transferring between the scheme providers three or four times a year, we can’t understand why.
Banks can be very agressive in taking business and many times the customer is completely unaware of it. People don’t realise that they’ve been shifted to a bank and are surprised that its happened. Customers go to a bank for a loan or something, sign a bunch of papers at the same time, only to find they’ve just placed their KiwiSaver account with that bank as well. People also willingly place their KiwiSaver with their bank so they can have all their accounts on one statement, which is going to cost you money.
At ISN we will recommend switching KiwiSaver providers only after analysing a person’s individual situation and goals to ensure that the likelihood of achieving their desired goals are enhanced by switching to a more appropriate scheme provider.
All of our advice and any recommendations we make will be with the person’s best interests at heart. We are interested in the overall financial health and offer your family and friends the opportunity to review their KiwiSaver. This service is offered on a cost and obligation free basis. Call us on 0800 66 66 78.