Ignorance breeding complacency for KiwiSavers
Nearly half of all KiwiSaver members wrongly think they have a government guarantee, according to a new survey that raises further concerns about the safety of investors.
The UMR Research survey of 750 people found worrying gaps in many people’s KiwiSaver knowledge.
Slightly more than one third (34%) of the people surveyed said they were KiwiSaver members.
When asked if the KiwiSaver fund they had invested in had a government guarantee, only 15% correctly answered that there was no guarantee while 48% thought their fund was guaranteed and 37% were unsure.
And more than half (56%) of KiwiSaver members surveyed said they do not know that much or hardly anything about the scheme they have invested in.
The survey will likely add further weight to the government’s moves to fast-track regulations increasing the reporting requirements for KiwiSaver providers.
This followed the recent revelation that Huljich Wealth Management had artificially boosted the returns on its KiwiSaver scheme.
The company was forced to amend its investment statement and the Securities Commission is now investigating.
Peter Huljich stepped down as managing director of Huljich Wealth Management last week and was replaced in the role by Don Brash.
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Comments and questions5
like lambs to the slaughter eg:hanover,etc
far too trustng of 'the authorities' to look after them
know it all anyway,or just cant be bothered to self-educate themselves
one day these sheeples will be fleeced
and then when they are,they will plead to the very same wolves to come to their rescue [while they hone in for the kill]
good luck!
Not being a kiwisaver thru' choice, the "join by default" seems to be " you get what you pay for ".
and this is why making super compulsory would be a disaster here - like it is in Aussie - where most of the population have no idea what's happening with their cash cos they never see it and never have to do anything with it. surely the main thing we can learn from the last couple of years is that fools and their $$ are always ripe for the picking
The previous Government adopted a 'wild west' attitude where rules were ignored and it was the victims fault that they where defrauded and lost money because the government did not police the rules. This has resulted in many people losing money and suffering financial hardshiip.
Should we have adopted the other part of the 'wild west' attitude where shotgun justice prevails?
If National wants New Zealand to tap into the profitable financial business market then we need real action on fraud and the ponzi practices that have gone on previously.
When government forces people to invest in Kiwisaver with a default provider, with the 'option' to opt out later, the government has to accept responsibility for ITS actions. Why should the government not be accountable for any losses that IT imposed on the people?
Hear the hoofs drumming in the wild, wild west of NZ Finance companies. And good on you Mad Mike Cullen for making it all so complex no one understands. Key and English get off your backsides and put an end to the gun totin Hanoveresque NZ finance market rorts!
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