KiwiSaver, New Zealand’s widely recognised retirement saving scheme, stands on the cusp of a momentous financial achievement as it grows closer to the threshold of $100 billion of invested funds. The impending milestone highlights the scheme’s soaring success. It solidifies its position as a cornerstone of retirement planning for New Zealanders looking to grow their nest egg.
As KiwiSaver approaches the $100 billion Asset Under Management (AUM) mark, it is essential to note that some of the main contributors to this are the vital contributions both employees and employers make to each KiwiSaver account. Another major factor contributing to the increasing amount of assets under management is the effective investment strategies each Scheme provider offers to new and existing KiwiSaver members.
The latest Quarter
Among 23 providers and 282 products available to New Zealanders, from Conservative Fund options to High Growth Funds, the KiwiSaver Landscape looks to be very competitive, with ANZ holding the largest market share at 20.1 %, with ASB and Westpac at 15.2% and 10.3% respectively, making up the top three largest KiwiSaver Providers. Some Notable performers in the latest quarter include Kiwi Wealth, Generate, and QuayStreet, each showing exceptional returns in their respective categories.
The Road Ahead
As KiwiSaver approaches the significant milestone of $100 billion in investments under management, a path of sustained growth and innovation is unfolding. This growth is complemented by a widening array of investment options within the KiwiSaver framework, encouraging a landscape of diversified choices.
Clive Fernandes, the CEO of National Capital, shared his perspective regarding the process towards the milestone. "As KiwiSaver reaches a hundred billion, its importance to financial security for millions of Kiwis is solidified. We need to ensure that this large pool of Kiwi's money is being managed well."