Improvements to KiwiSaver annual statements
The Government has introduced changes to improve the annual statements for KiwiSaver investors to enable them to make positive decisions about their retirement savings.
The Financial Markets Conduct Amendment Regulations 2019 now require annual statements sent to KiwiSaver members to include retirement savings and income projections. The projections will be calculated using consistent methodology and assumptions.
Retirement savings products like KiwiSaver require people to make decisions, often many years in advance, about factors that will significantly influence the level of retirement income they will receive. In particular, the rate of contribution and fund selection can have a major impact on a person’s retirement income. These impacts are often underestimated by investors.
Including projected figures on annual statements helps people ‘project forward’ and understand how their current contributions and investment decisions can impact on their retirement savings over time. Investors also receive some information about what steps they can take to make an impact on their retirement savings.
These requirements complement changes to KiwiSaver annual statements that came into force in 2017, requiring KiwiSaver providers to give the following information to investors:
- total fees paid that year (in dollar values)
- the total amount that the investor’s account grew by over the year
- summary transaction figures detailing the money that has gone in and out of the investor’s account during the year.
- Cabinet paper: Improving KiwiSaver Annual Statements [PDF 112KB]
- Regulatory impact statement: Changes to annual statement information for KiwiSaver investors [PDF 570KB]
- Financial Markets Conduct Amendment Regulations 2019 [PDF 224KB]
- Financial Markets Conduct Amendment Regulations 2019: Minute of Decision [PDF 200KB]