KiwiSaver providers not doing enough to educate savers: FMA

The pensions watchdog says the default KiwiSaver providers are making a poor job of their legal duty to educate savers.

KiwiSaver has grown to more than $40 billion, equivalent to 15 per cent of GDP, and a large proportion of the money is in the nine default schemes, into which KiwiSavers who don't choose their own scheme are randomly directed by Inland Revenue.

Their money ends up in low-risk, low-return default funds, which may not suit their long term needs, and many may be better off investing in a higher-risk, higher-return balanced, or growth fund.

In return for getting profitable fee-paying savers, the nine default providers ANZ, AMP, ASB, Fisher Funds, Mercer, BNZ, Booster, KiwiWealth and Westpac promised to educate savers to make active fund choices.

from
http://www.stuff.co.nz/business/money/97526022/KiwiSaver-providers-not-doing-enough-to-educate-savers-FMA