Tamsyn Parker

Money Editor for NZ Herald

AMP to merge KiwiSaver schemes

The AXA KiwiSaver scheme will cease to take new members as of this Friday. Photo / Thinkstock
The AXA KiwiSaver scheme will cease to take new members as of this Friday. Photo / Thinkstock

AMP chief executive Jack Regan is not concerned about losing a portion of new people who sign up to KiwiSaver through the default system.

The country's third largest KiwiSaver provider this morning announced it was merging the two schemes it operates - the AMP scheme and the AXA one it took over after acquiring the business.

The closure of the AXA scheme means AMP will no longer soak up a third of new KiwiSaver members who do not chose a scheme and are allocated by the Inland Revenue.

Instead it will get one in five new default members.

Regan said there was still significant opportunity for driving further growth in KiwiSaver with forecasts by Treasury estimating it will be worth $60 billion by 2021, up from its current $13 billion.

Regan said AMP would rely more on its link to employers where it saw stronger prospects for more money to be ploughed into the retirement savings scheme.

"AMP has particular strengths in the employer chosen schemes. Members in these schemes are more active savers, so there are stronger growth prospects in terms of growth in assets under management."

The AXA scheme will cease to take new members as of Friday with existing AXA KiwiSaver members transferred to an enhanced AMP scheme.

AXA customers will receive a transfer pack in May with the process expected to be completed by August.

Regan said the enhanced scheme would use AXA's multi-manager investment approach while taking on AMP's technology and customer service approach.

AMP has more than 260,000 KiwiSaver Scheme customers across the two KiwiSaver Schemes which have a combined market share of 18 per cent of market share of funds under management.

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