Switch risk: young KiwiSavers miss out on growth 'boomerang'

FMA's investor capability manager Gillian Boyes says banks need to improve the way the help customers through market turbulence.

Dan Brunskill

Thu, 17 Jun 2021

A new report has found younger KiwiSaver customers in bank schemes were much more likely to switch to a low-risk fund during the pandemic than those with non-bank providers.The Financial Markets Authority commissioned PwC’s behavioural science team to examine KiwiSaver switching while markets were reacting to covid-19, from 11 providers’ data.The study found more than 11,700 younger bank customers switched to a lower risk fund between February and April 2020, compared to just 957 non-bank customers.That’s 26 times higher than...

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