Young New Zealanders are missing out on billions

18 October 2019

Written by The Spinoff

The Spinoff talks to Rupert Carlyon and finds out how young Kiwis are missing out on billions in their KiwiSaver accounts.


Think you’ve got your KiwiSaver sorted? Try kōura’s ‘Robo-advice’ questionnaire, and you might be surprised.

If a person who looks like they know about finance asks you whether your risk appetite is low, medium or high, what do you say? The problem is most Kiwis don’t understand what the question means, or the consequences the answer has for their savings, says Rupert Carlyon, co-founder of new KiwiSaver scheme Kōura

“When it comes to investing, people don’t understand the definition of high, medium and low risk. To them ‘high risk’ means ‘would I be willing to lose all my money?’”

KiwiSaver providers are not having the right conversations with their clients to make sure they are aware of the decisions they need to make for their retirement, he says. As a result, New Zealanders are missing out on crucial savings. kōura has done research which shows that more than half of KiwiSaver investors are in a fund that is not the right type them. This includes the 20% of people who are languishing in low-return default funds. It’s now been 12 years since KiwiSaver launched and the industry is not working quite as it should, Carlyon says. 


Read the full article here.


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