According to research undertaken by Consumer New Zealand, bank-run KiwiSaver schemes have the lowest satisfaction ratings. It has been a rough year for KiwiSaver members because of the increasing market volatility, which has caused the satisfaction ratings to take a hit. Meanwhile, KiwiSaver members are watching their balances fall.
The two largest KiwiSaver providers in New Zealand, ANZ and ASB, came in last place with a score of 47 per cent, while Westpac rated 54 per cent. BNZ was the only major bank to rank above average, scoring 64 per cent. However, BNZ did fall short with the average return on investment and rate below average. Simplicity was rated the top fund manager with a 77 per cent satisfaction score, while Milford Asset Management was tied for second place with Generate at 67 per cent.
This is especially true when non-bank funds are above the banks regarding performance, so the major banks do have some work to do to lift their standards and reach the same performance levels.
An ANZ spokeswoman said that ANZ strongly focuses on customer experience and delivering good investment outcomes for its members.
A potential reason for the low KiwiSaver satisfaction is the industry-wide lack of transparent reporting regarding the fund's performance and the fees their customers are paying. Three-quarters of those surveyed didn't know what they paid in fees, and 60 per cent didn't know how well their fund was doing compared to others. Only one in four people felt that it isn't a challenge to compare KiwiSaver providers.
Annual member statements, which have recently been either posted or emailed to members, also contain information on fees and performance of the fund and estimate what a person will have in their KiwiSaver account by age 65 at their current rate of savings.
National Capital has pages on 27 different providers with information about their fees and funds. You can also view what is important to check when comparing funds on our KiwiSaver Comparison page.
By completing a KiwiSaver Healthcheck, you can view how your fund compares to our recommendations, their current fees, past performance of returns, and more. If you decide to join National Capital, you will receive annual reviews and updates on your KiwiSaver Provider and Fund, keeping you updated on the latest about your KiwiSaver investment.