Financial Markets Authority manager of investor capability, Tammy Peyper. Photo: Supplied
Investor engagement with and commitment to KiwiSaver have been shaken but not broken by financial market volatility, according to a new survey.
The Financial Markets Authority bi-ennial report shows satisfaction with the retirement saving scheme falling to 74 percent from 79 percent two years ago, but no rush to cut contributions or switch schemes.
Eighty percent read their annual statement to some extent, a slight increase, while 63 percent said they were checking their balances at least monthly.
The Authority's manager of investor capability, Tammy Peyper said investors were looking through the short term market ructions.
"It is heartening to see most KiwiSaver members are staying the course through turbulent markets and are optimistic about the long-term."
"However, the difficult and uncertain economic climate has shaken some members and likely had an impact on what some feel they can afford to contribute."
The number of respondents saying they could not alter contributions rose from 42 percent to 51 percent, but 59 percent said it was a priority to keep saving despite recent market volatility, marginally lower than two years ago 58 percent said they were confident in the long-term prospects of KiwiSaver.
Peyper said virtually everyone surveyed had seen the lump sum projection on their statements, and for a growing number that was prompting them to seek advice or take action.
"The most common response was to increase contributions, which is a promising sign because your contribution rate is a major influence on your lump sum," she said.
"It is slightly concerning that fewer people are happy with their retirement balance projection - the proportion of members who think it was around, or more, than they were expecting has dropped from 62 percent to 53 percent. But the point of the projection is to get people thinking now, as decisions in the short-term will have long-term impacts."
Investors in actively managed growth funds were most satisfied in the scheme, their provider and what they were paying in fees, while unhappiness was likely tied to a drop in the value of savings and the level of fees.
