Young women least likely to read KiwiSaver statements

KiwiSaver members are reading statements about their accounts - young women are the least likely to. Photo / iStock

Most KiwiSaver members are reading their annual statements but less than a quarter have checked to see if they are on track for the kind of retirement they want.

Research by investment watchdog the Financial Markets Authority found 79 per cent of members had read their annual statement.

Paul Gregory, head of investor capability at the FMA said it had been surprised by the number of people that did read their statements.

"This shows there is engagement which is encouraging and was surprising."

However the research did find a gender and age split on who read annual statements thoroughly.

Males over 60 were more likely to read their annual statements thoroughly while females aged 18 to 29 were least likely to.

Females aged 18 to 29 were also the ones most likely to say they did not recall receiving a statement at all.

For those who didn't read the statement the biggest barriers were that it was too complicated or they weren't interested in it.

But just 23 per cent had checked to see if their KiwiSaver account was on track.

Gregory said the statement should be a launchpad for people to think about whether at they were on track to have the retirement they want.

More than 70 per cent said they wanted to see a lump sum figure for how much they would have at 65 and a further 62 per cent would like to see what weekly figure that lump sum would give them.

"When this arrives through your letterbox, or in your email, it's a great opportunity to check in with your goals. And, if you're not happy, to check in with your KiwiSaver provider."

Of those who checked whether they were on track the most common way to do so was through an online calculator either on their provider's website or through the sorted website.

The research also asked people what extra information in the statement would help people them make better decisions about their retirement.

More than 70 per cent said they wanted to see a lump sum figure for how much they would have at 65 and a further 62 per cent would like to see what weekly figure that lump sum would give them.

Another 37 per cent said they would like to see fees broken out in a dollar figure.

Currently providers do not have to give that information.

Gregory said the results of the survey would be used as part of a review of annual statements being worked on by itself, the Ministry of Business, Innovation and Employment and the Commission for Financial Capability.

KiwiSaver providers have to send out an annual statement every year within three months of the end of the tax year on March 31.

The research surveyed 2000 people between May and June of which 1313 people were KiwiSaver members.

Of those who were not KiwiSaver members most were over 60 and had an annual income below $50k.

Read the full report from the FMA here: