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1.3 Objectives of this Review

Given that a large number of policies intervene in the KiwiSaver market, solving our information deficiency in KiwiSaver should ultimately help officials provide betterinformed current and future policy advice and assist any assessment of whether the KiwiSaver model continues to meet legislative and policy goals.

This report set out with the following objectives:

  • Collect and review the available information on the KiwiSaver fund manager market by using standard techniques and international comparisons to make empirical observations about the competitiveness and efficiency of the market.
  • In the case of the asset allocation trends for KiwiSaver, use standard benchmarks to compare the New Zealand KiwiSaver situation to overseas jurisdictions and accepted finance theory.
  • Provide an initial assessment whether the private provider model has fulfilled the legislative objectives of the KiwiSaver Act by:
    • Operating in an economically efficient and competitive manner.
    • Providing for maximum retirement income outcomes by generating adequate returns for members.
  • Provide an overview of how are KiwiSaver asset allocations affect domestic capital markets in New Zealand and the supply of financial capital.
  • Observe the trends and implications of greater saving via KiwiSaver.
  • Observe any other second order benefits in capital markets from KiwiSaver.

Ultimately, this report set out to provide an empirical information base to address whether KiwiSaver under its current design contributes to higher living standards by improving economic performance and maintaining a stable and sustainable macroeconomic outlook.

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