55% thinking of increasing KiwiSaver contributions

A survey for ANZ Investments shows over half of KiwiSaver members would like to lift their contribution rate when the new ‘default rate’ takes effect in April.

From the first of April the default KiwiSaver contribution rate will rise from 3 per cent to 3.5 percent. Members can opt for a temporary reduction back to 3 percent and they can increase their contribution rate beyond 3.5 per cent.

The survey of KiwiSaver members (by Horizon Research) from across all providers found:

• 34 per cent of members intend moving to the new 3.5% default rate

• 21 per cent said they would increase their KiwiSaver contribution above 3.5 per cent if their employer matched it

• 10 per cent intend to keep contributing at 3 per cent

• 3 per cent intend requesting a contribution suspension

The survey also found 22 per cent of people surveyed weren’t sure what they will do.

Commenting on the results Fiona Mackenzie, ANZ Investments Managing Director, (pictured) said: “Raising contribution rates is one of the ways we can boost retirement outcomes and power better financial futures.

“It’s really encouraging to see that so many members intend to increase their contribution rate.

“We know when personal and household budgets are stretched this can be a challenge, but we continue to see Kiwis positively engaging with KiwiSaver, as a pathway to home ownership as well as planning for life after 65.”

The Horizon online survey was of 1,839 KiwiSaver members aged 18+.