Inside Money: NZDF marches on KiwiSaver offensive

The New Zealand Defence Force (NZDF) has revealed plans to marshal its employees into a new dedicated KiwiSaver scheme. Photo / Hollie Brown

KiwiSaver has been a great boon to the local funds management and financial services journalism industries.

But the spectacular growth of the quasi-compulsory savings scheme has its downsides too.

For example, KiwiSaver has allowed many employers to opt-out of any responsibility for supporting the retirement savings aspirations of their employees - a decision hurried along by new regulations putting traditional workplace super in the too-hard basket for most firms.

However, some employers remain committed to helping their underlings through the retirement savings jungle. This week, for instance, the New Zealand Defence Force (NZDF) - the country's fifth-largest employer - revealed plans to marshal its employees into a cohesive army of super savers.

The strategy, according to Brigadier Howie Duffy, NZDF assistant chief personnel, centres around a new, dedicated KiwiSaver scheme that he hopes will attract a large proportion the group's 14,000-ish employees.

Duffy said NZDF employees currently contribute to over 30 different savings schemes - mostly KiwiSaver providers. While about 3,700 individuals contribute to the existing NZDF super scheme, he said membership has been declining as KiwiSaver has grown.

Under the Duffy plan, the existing NZDF super scheme will close to new members in deference to the yet-to-be-finalised KiwiSaver scheme.

He said the combination of standard government incentives with broad investment choice, competitive pricing, smart technology and financial literacy training should be a "compelling" proposition for NZDF staff.

All going well, as the NZDF scheme builds scale (on top of the $355 million its existing super fund already manages) Duffy said it could add on other benefits including discounted financial products and advice.

"We want to use our purchasing power to good effect," he said. And that's about a good a use of the NZDF workforce as any international intervention.