Pre-retiree KiwiSavers need more info: survey

Pre-retirees are not getting enough information to help them make decisions about their retirement savings. Photo/Getty Images.

More than half of pre-retirees say they are not getting enough information from their KiwiSaver provider to help them make decisions about retirement, a survey has found.

The research questioned people over the age of 50 about their expectations and plans for retirement and was undertaken on behalf of the Commission for Financial Capability and the Financial Markets Authority.

When asked about the helpfulness of information provided by their KiwiSaver provider to make decisions about retirement just 49 per cent found the information given to them was useful.

Just over half (53 per cent) said the information was useful in helping them work out how much of a lump sum they would have in retirement.

While only 44 per cent said it would help them work out what sort of income they would get from their lump sum in retirement.

That's despite the top priority for pre-retirees being able to have a regular income for the rest of their lives.

Nearly three-quarters (74 per cent) wanted to have a regular income while the next highest priority was the ability to access their funds when they wanted to.

Simone Robbers from the FMA said it would continue to work with providers to try and ensure there was quality information available and it was more accessible.

"The message from KiwiSavers is that they want to get the right kind of information and resources, in a way that's easy to understand, to help them make decisions about this stage in their retirement planning."

"It's critical that people take some time to consider how best to preserve and use their hard-earned lump sum when they reach 65."

It's critical that people take some time to consider how best to preserve and use their hard-earned lump sum when they reach 65.

Simone Robbers

Just over a quarter (26 per cent) of those surveyed said they planned to take all or some of their money out when they retire, 48 per cent planned to leave the money in KiwiSaver while 26 per cent didn't know what they would do.

Of those who plan to take some money out 53 per cent would spend or invest it elsewhere, 37 per cent would just invest it elsewhere and 10 per cent would just spend it.

The survey questioned 1052 people over the age of 50 and included pre-retirees and some who had already retired.

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See the full report here: