SuperRatings is excited to announce its top-rated KiwiSaver schemes for 2022. The market continues to be extremely competitive, with fees and performance being key drivers of changes in ratings outcomes over the year. Eight providers were awarded a ‘Platinum’ rating for 2022.
SuperRatings’ assessment criteria considers five key factors, including investments, fees, member servicing, scheme administration and governance. Schemes awarded a Platinum rating are well balanced across all key assessment criteria. We believe these schemes are well placed to deliver strong value for members and enhance retirement outcomes relative to their peers.
The industry eagerly awaited the results of the Financial Market Authority’s default tender review over the past year and Dec 1 marked the transition to the providers selected for 2021 to 2028. We are supportive of the movement from a default conservative fund to a balanced fund, with members benefiting from greater exposure to growth assets such as Australasian and Global Shares, which generate higher returns for members over the long run.
The focus on fees remains strong in both the Australian and New Zealand markets, we have seen fees decrease among KiwiSaver schemes, with fee reductions for percentage-based annual management fees and decreases or abolishment of member fees common themes.
We continue to believe in the importance of examining performance and fees together and do so through our Net Benefit research. This modelling allows us to examine the dollar outcome a member receives in their account taking into consideration their Scheme’s investment performance and the impact of fees. An interesting trend we have observed in Australia is the strong net benefit outcomes of some ESG and sustainable investments, an area previously considered to come at a higher cost with lower returns.
Further, the conversation about ESG and sustainability has become louder, with several superannuation funds in Australia, as well as New Zealand Schemes making commitments to achieve net zero emissions by 2050. It has been pleasing to see the progress made here through Mindful Money’s Aotearoa New Zealand Investor Coalition for Net Zero.
We acknowledge that members have faced a bumpy ride over the last few years coupled with uncertainty due to ongoing lockdowns. It has been really pleasing to see the support provided by schemes over this period to provide reassurance to members and education regarding the KiwiSaver environment. As businesses across the country had to adapt to lockdowns and working from home, we also saw KiwiSaver schemes adapting to the new world.
Kirby Rappell, Executive Director of SuperRatings commented, “Member seminars are now offered online by 80% of schemes that engaged with us through our 2021 review and through our discussions with providers this style of communication is going to remain a key channel for engagement with members. Content typically includes KiwiSaver 101 sessions, how to select a suitable fund, information on member contributions, the impacts of fund choice and contributions on your potential retirement balance, investment updates and information for first home buyers.”
Kirby Rappell continued, “A silver lining of the pandemic has been the leaps and bounds made in terms of connecting with people through online platforms such as video calling and webinars. There is a wealth of information now being provided to help members with their KiwiSaver, as well as general financial help such as budgeting and lifestyle planning. Short and engaging videos really resonate with people by providing complex information in bite sized, easy to understand segments.”
We have also seen the use of digital channels gaining traction, with the majority of schemes offering mobile apps and over a third providing live chat, with a focus on ensuring the best experience for members when using these channels through ongoing enhancements.
We look forward to seeing how the KiwiSaver market progresses as the transition to the new default providers occurs and new entrants and existing providers evolve.
SuperRatings’ Scheme Rating Criteria
Platinum Rated Schemes
ASB KiwiSaver Scheme
BNZ KiwiSaver Scheme
Fisher Funds KiwiSaver Scheme
Fisher Funds TWO KiwiSaver Scheme
Kiwi Wealth KiwiSaver Scheme
Mercer KiwiSaver Scheme
Milford KiwiSaver Plan
Westpac KiwiSaver Scheme
Lonsec Gold Rated Schemes
AMP KiwiSaver Scheme
ANZ Default KiwiSaver Scheme
ANZ KiwiSaver Scheme
Aon KiwiSaver Scheme
Booster KiwiSaver Scheme
Generate KiwiSaver Scheme
New Zealand Defence Force KiwiSaver Scheme
OneAnswer KiwiSaver Scheme
Simplicity KiwiSaver Scheme
We welcome media enquiries regarding our research or information held in our database. We are also able to provide commentary and customised tables or charts for your use.
For more information contact:
Tel: 1300 826 395
Mob: +61 408 250 725
Require further information? Simply visit www.superratings.com.au