KiwiSaver trial to get savers on track for retirement

The Financial Markets Authority is working with ANZ to help people get better prepared for retirement. Photo/Mark Lipczynski.

What will it take to get a 56-year-old to check if their savings are on track for the kind of retirement they want?

That's exactly what the Financial Markets Authority is hoping to find out through a behavioural based trial run in conjunction with KiwiSaver provider ANZ.

The regulator is working with the bank to see if changing the way it communicates with members aged 56 and users of its lifetimes investment approach can prompt people to check they are on track to reach their retirement goals.

It also wants to find out if people take action or get advice if they are worried they won't be on track.

The pilot is targeting 56-year-olds after earlier research by the FMA found people who started planning for their retirement at least 10 years in advance had the highest level of confidence about funding their retirement.

The ANZ pilot is the second one undertaken by the FMA.

Last year it worked with Kiwi Wealth, a sister company to Kiwibank, to look at how people make decisions when it comes to the default funds.

Paul Gregory, FMA head of investor capability, said: "We hope both pilots will show real and positive outcomes for both investors and providers, prompting other KiwiSaver schemes to take on board these insights.

"We also think there are insights here for managed investment schemes in general."

The ANZ pilot will run from May until the end of the year.
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