NEW ZEALAND - Despite current market volatility, 95% of New Zealand's private investors who have joined KiwiSaver - the country's national superannuation scheme - feel that signing up to the scheme was a good decision.
Additionally, when asked what their reasons were for joining KiwiSaver, almost one in five investors (17%, up from 7% last quarter) cited market volatility as one of the key reasons they had joined, or were intending to join, a KiwiSaver scheme.
Steven Giannoulis, ING (NZ) Limited's general manager of investor services, said with the current turbulence across global markets, the deterioration of the property market and the increase in food and petrol prices, it was encouraging to see that these astute investors were recognising the value of KiwiSaver.
"Although the recent property boom may have drawn some of the focus away from traditional pension schemes as security for retirement, there now appears to be a move towards investors looking to hold a more diversified investment portfolio that includes either KiwiSaver or a different superannuation scheme," he said.
However, although ING's research highlighted there was a positive trend amongst New Zealand investors joining a KiwiSaver scheme, 50% of investors remained concerned the government might significantly change or even abolish KiwiSaver (versus 54% last quarter). This was despite recent reassurances from New Zealand's major political parties that KiwiSaver was around for the long term.
Giannoulis said looking ahead, if the market was to keep seeing positive increases in the number of people joining KiwiSaver, the main political parties would need to continue to provide additional reassurance that the scheme, and the benefits that were on offer as part of the scheme, were here to stay.
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