And fewer than half of 40 to 64-year-olds have retirement savings outside KiwiSaver, the survey found.
Improving Kiwis’ retirement confidence isn’t as out of reach as some might fear, AMP KiwiSaver managing director Jeff Ruscoe says.
But there were reasons for optimism, with the survey showing a knowledge gap was the main barrier to retirement readiness, an expert said.
Improving Kiwis’ retirement confidence was “far more achievable than people think”, AMP KiwiSaver managing director Jeff Ruscoe said.
“A gap in knowledge and a lack of action can both be addressed by simply seeking advice.”
Despite nearly two thirds of 50 to 64-year-olds feeling stressed about their financial future, 85% had never sought advice, Ruscoe said.
“If you thought your brakes might fail on the motorway, you wouldn’t just keep driving – you’d get them checked and seek some advice before something goes horribly wrong.”
Small, manageable changes such as reviewing contributions and fund choice, or simply seeking guidance can make a big difference to KiwiSaver balances, one expert says. Photo / 123rf
Retirement confidence was more than just how much a person could save before age 65, he said.
“It’s about knowing how to confidently use the money you’ll have, to help you live the life you want once you move beyond fulltime work … not only is most of this advice free to get, the way to get it is as easy as calling your KiwiSaver provider or hopping online to free tools like Sorted.”
There was still untapped potential for Kiwis to make the most of the scheme.
“[And this is] often through small, manageable changes such as reviewing contributions and fund choice or simply seeking guidance.”
The Government has already brought in changes to improve Kiwis’ retirement savings, including an increase to the default contribution rate for KiwiSaver, which rose from 3% to 3.5% for employers and employees on April 1.
Those aged 16 and 17 are also now paid employer contributions, as long as they are contributing themselves.
Default rates will rise to 4% for employees and employers in 2028, part of a six-year plan that would eventually see total contributions reach 12%.
However, the Government also announced last year the maximum Government contribution (member tax credit) would be halved to $261 a year.