MySuper Vs. KiwiSaver: Retirement Saving For The Less Engaged

  • Geoffrey J. Warren Centre for International Finance and Regulation, Sydney, Australia
DOI: https://doi.org/10.24135/afl.v3i2.21
Keywords: Superannuation, MySuper, KiwiSaver, Regulation, Portfolio construction, Fees

Abstract

Australia’s MySuper default superannuation funds are compared against New Zealand’s range of KiwiSaver funds. Some key points of contrast include: the relative maturity and larger balances of the Australian system; the majority of MySuper providers are not-for-profit, whereas KiwiSaver is dominated by for-profit providers; MySuper funds use a much broader range of assets, while KiwiSaver funds invest largely in listed assets; greater use of lifecycle strategies in Australia; the skew to conservative funds under KiwiSaver; and differing fee structures, the impact of which depends on account balance. It is argued that New Zealand could do more to enhance the probability of achieving adequate incomes in retirement.

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Author Biography

Geoffrey J. Warren, Centre for International Finance and Regulation, Sydney, Australia

Geoffrey J. Warren is Research Director, Centre for International Finance and Regulation, Sydney, Australia

Published
2014-11-30
How to Cite
Warren, G. J. (2014). MySuper Vs. KiwiSaver: Retirement Saving For The Less Engaged. Applied Finance Letters, 3(2), 2-11. https://doi.org/10.24135/afl.v3i2.21
Issue
Vol. 3 No. 2 (2014): Current Issues in Fund Management
Section
Articles submitted to regular issue

Copyright (c) 2016 Geoffrey J. Warren

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