New Zealand. Private superannuation savings schemes ‘underperforming’
People in old-style workplace superannuation savings schemes are often getting lower returns from their investments than they would in KiwiSaver schemes, and it’s prompting some to call for change.
Old-style workplace super savings schemes are increasingly revealing to savers how they are tracking compared to KiwiSaver funds, and it’s not flattering their performance.
Schemes publish charts showing their funds’ performance compared to the median, or average, KiwiSaver fund in each fund category.
There is big money tied up in some of the schemes, include the $1.2 billion Unisaver scheme for university employees, and the $2b Police Super scheme.
Superannuation scheme expert Chris Douglas from MyFiduciary said workplace schemes hadn’t had the same scrutiny as KiwiSaver, and there hadn’t been much pressure on them to cut fees by negotiating better deals from the external fund managers they hire to invest their savers’ money.
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