Retirement savings back to pre-crisis levels

New Zealanders are flooding into KiwiSaver and once again saving for their retirement despite the recession, according to a survey released today.

The AMP SuperWatch showed saving for retirement has returned to pre-recession levels, with 64 percent of savers saying they were saving for retirement.

Numbers joining KiwiSaver have increased from 14 to 43 percent in just two years. A further 19 percent said they were likely to join the scheme by year's end.

Few have reduced their contribution, though indicating in February they intended to, despite the reduced minimum contribution levels effective from April 1, 2009.

However, few have changed investment funds since they joined KiwiSaver, the survey found.

AMP general manager of marketing and distribution, Blair Vernon, said there were signs New Zealanders were serious about saving for their retirement.

"It is moving past being seen as discretionary spend. But we need people to move on from acknowledging the need to do it, to taking ownership of getting the best from their savings. People can get involved and talk to their provider or their adviser rather than take the 'set and forget' approach," he said.

The survey also found that two out of three prefer the age of eligibility for New Zealand Superannuation to go no higher than 65. Of those who disapprove of an increased age of eligibility, 41 percent said they believed they had paid sufficient tax to feel they had earned New Zealand Superannuation at 65. A further quarter considered they might be unfit for work beyond 65.

The survey was conducted by Colmar Brunton in August and has a sample size of 505. The margin of error is a maximum of plus or minus 4.4 percent.

- Reuters