Total money in KiwiSaver funds continues to grow, but at a much slower pace than the previous two years as both returns and numbers of new members decline.
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Investment returns in the year to 30 March 2016 were a smaller proportion of the overall growth, as markets fell back from earlier double digit performance. Total members in KiwiSaver have also grown, but at the lowest level since reporting began, 4% increase this year compared to 14% in 2012.
For the first time, the level of people transferring between schemes was higher than people joining KiwiSaver. Over the course of the year, 175,000 members transferred to a different scheme provider (compared to 177,000 in 2014-15), while 145,000 new members joined (compared to 245,000 new members in 2014-15).
These statistics were released today in the FMA’s annual KiwiSaver report, published as part of the FMA’s obligations under the KiwiSaver Act 2008.
Rob Everett, FMA Chief Executive, said “as new membership is slowing, it’s logical that providers will continue to look to transfers to grow the size of their schemes. The FMA will be paying attention to how transfers occur, making clear our expectations to providers and giving clear information to KiwiSaver members about how to prepare for those circumstances and what they should expect from providers.”
The number of default members continues to decline from its peak of 465,000 in 2013 to 445,000 in 2016, now representing 17% of the total members.