Wednesday, 17 July 2024
ANZ KiwiSaver trial to target decision-making a decade out from retirement
New Zealand's Financial Markets Authority (FMA) is working with ANZ to see if behavioural insights can prompt more ANZ KiwiSaver members to get retirement advice, or use retirement-planning tools when they hit 56 years old.
The aim of this behavioural insights pilot is to examine if adjusting communications sent to ANZ KiwiSaver members aged 56, and users of their ‘lifetimes’ investment approach, results in more members checking they are on track to achieve their retirement goals. The study also wants to find out if they take action or seek advice, if concerned they aren’t meeting their goals.
Recent FMA research shows us that New Zealanders who started retirement planning at least a decade before they leave the workforce had the highest levels of confidence about funding their retirement.
Paul Gregory, Director of External Communications and Investor Capability at the FMA said: “This is why the pilot with ANZ is targeting 56 year olds. They’re at a critical moment when they’re still far enough away from retirement to make a real difference with the decisions they make now.”
In 2016, The FMA published a paper outlining the value of behavioural insights in aiding good investor decision-making. Since then, the FMA has worked with two KiwiSaver providers to explore how improved interactions with their KiwiSaver members could prompt more frequent and better decision-making.
An earlier pilot, with Kiwi Wealth, focussed on decision making around default funds.
Mr Gregory said: “We hope both pilots will show real and positive outcomes for both investors and providers, prompting other KiwiSaver schemes to take on board these insights.”
“We also think there are insights here for managed investment schemes in general.”
ANZ General Manager Funds and Investment Ana-Marie Lockyer said ANZ supported any moves to help members save for a comfortable retirement.
“ANZ’s lifetimes option automatically moves KiwiSaver members’ money into funds that are appropriate for their age,” says Mrs Lockyer.
“But, everyone is different and it would be good to see if we can encourage members to take a closer look at their retirement savings plan while they’re still at an age where they can take steps to boost their savings.”
The ANZ behavioural insights pilot will run from May until the end of the year.
Re-disseminated by The Asian Banker
