KEY POINTS:
More than half of KiwiSaver investors fear future governments may significantly change, or even abolish the popular retirement savings scheme, according to a new survey.
ING, one of the largest KiwiSaver providers, says 54 per cent of the private investors taking part in its quarterly survey are wary
about the impact of future politicians tinkering with the scheme.
Its research shows 24 per cent of people have signed up in the most recent survey period, up from 15 per cent in 2007.
ING NZ's investor services manager Steven Giannoulis said the uncertainty around future governments may be contributing to why only 29 per cent of investors indicated that they intend to join a KiwiSaver scheme.
"Our recent survey was conducted amongst investors who hold a significant level of investments or disposable assets and who you would assume are financially astute," he said.
"Even with a significant level of volatility in the global economy, many investors are seeing some value in joining a KiwiSaver scheme," said Giannoulis.
"However, what is concerning is that amongst those investors who haven't yet joined KiwiSaver, the intention to join is low.
"Uncertainty around whether the Government will change the rules governing KiwiSaver seems to be holding some investors back from joining and 13 per cent of investors indicated that it is a direct mistrust in the Government that is stopping them joining a KiwiSaver scheme."
" While we believe that the Government has done an excellent job in making investors aware of the incentives on offer as part of the KiwiSaver, an opportunity still exists during this election year to reassure New Zealanders that the scheme is here to stay no matter who is in power."
More than half of those surveyed were in favour of the KiwiSaver scheme being made compulsory.
ING surveyed 100 New Zealand investors aged 30 years and above who had disposable assets or investments totalling US$100,000 or above.
In March this year, National Party finance spokesman Bill English said the party's KiwiSaver policy would not be revealed until closer to the election.
He did say, however, that National was likely to keep some form of government subsidy.
"We haven't suggested anything about changing the government subsidy into KiwiSaver,' he said at the time. "We've said KiwiSaver will remain and we'll announce our policy when we're ready ... there's no doubt there will be KiwiSaver with a government subsidy under National."
English would not at that point commit National to keeping the employer contribution component of the scheme.
- NZ HERALD STAFF
