Goldsmith Update - October 2016
New Zealanders now have around $34 billion invested in KiwiSaver. Those savings will help supplement NZ Super for generations to come so it’s important that investors, young and old, keep an eye on their investments.
I have announced we are going to make changes to your KiwiSaver Annual Statement in an effort to make it easier for you to find out what you’re paying every year in fees.
I have seen recent reports that only three of the default providers supply the total fees in their annual statement, which the government doesn’t believe is good enough.
In my view, KiwiSaver providers should be upfront about their fees. You would expect to know the fees you’re paying for any other service, and KiwiSaver investments shouldn’t be any different.
I want to ensure New Zealanders get clear and easy-to-interpret information about their KiwiSaver fees and performance. This is why we’re currently consulting with providers on changes to investors’ annual statements, including::
1. Greater transparency around what fees investors are paying, including a dollar value for total fees;
2. Projections for the lump sum and resulting annual income investors are on track to save;
3. Information about how investors’ savings are growing;
4. Prompts for investors to consider their fund choice and contribution rates and information about how they can increase their retirement income.
For many, KiwiSaver is the sole retirement savings mechanism and fees can add up over time. We want to reduce the “set-and-forget” mentality and encourage everyone to be actively engaging with their investment.
It is my expectation that any regulatory changes that are required will be in place for the next round of annual statements. KiwiSaver providers should already be working towards providing you with the total fees you are paying.
In the meantime, you can use the Fund Finder on www.sorted.org.nz to find out more information about the fees on your KiwiSaver.
Congratulations to the successful candidates in this year’s local body elections. In Epsom, I’d single out Desley Simpson, new councillor for the Remuera part of the electorate, and Chris Fletcher returned in the Eden/Epsom part of the electorate for special mention. Representing your community requires commitment, energy, and leadership, so all the candidates should be acknowledged for standing. I also congratulate Phil Goff, the new Mayor of Auckland. He has been an adversary in Parliament, but I am confident that we will all work together constructively to address the challenges of growth in Auckland.
It was a real honour last week to be the Ministerial representative at the investiture ceremony for some great New Zealanders, including Remuera locals Sir Michael Friedlander and Sir Christopher Mace. It was a special day for them and their families.
PM in Epsom
I took our Prime Minister John Key around parts of the electorate during the recess. We visited The Mind Lab school holiday programme – a haven for young makers, doers, thinkers and tinkerers – on Carlton Gore Road. The programme helps children discover the importance of creativity, teamwork, and perseverance by experimenting with the very latest digital technologies. We popped into the Newmarket Business Association, where the Prime Minister shared some of his insights on global politics, and went to a couple of events where the PM received plenty of feedback on local issues.
Pizza and Politics
We continue to experiment with new ways to engage with the community, to talk directly with people from all over Epsom about issues of concern to them. Over the following months I’ll invite a cross section of residents to join me for ‘Pizza and Politics’, an informal event in our Great South Road offices. The one during the recess was a lively evening with lots of discussion. One topic was the impact of immigration on housing; and it was interesting to have half the audience comprising recent migrants, who expressed a diversity of views on the subject. I undertook to feed the sentiment back to my colleagues. I look forward to hosting the next ‘Pizza and Politics’ on Tuesday 25th October.
Hon Paul Goldsmith
National List MP based in Epsom
P: (09) 524 4930