MySuper vs. KiwiSaver: Retirement Saving for the Less Engaged

Forthcoming, Applied Finance Letters

CIFR Paper No. 037

14 Pages Posted: 27 Aug 2014 Last revised: 30 Sep 2014

See all articles by Geoff Warren

Geoff Warren

Australian National University (ANU) - Research School of Finance, Actuarial Studies and Statistics

Date Written: September 30, 2014

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 KiwiSuper; 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.

Keywords: Superannuation, MySuper, KiwiSaver, regulation, portfolio construction, fees

Suggested Citation

Warren, Geoffrey J., MySuper vs. KiwiSaver: Retirement Saving for the Less Engaged (September 30, 2014). Forthcoming, Applied Finance Letters; CIFR Paper No. 037. Available at SSRN: https://ssrn.com/abstract=2486269

Geoffrey J. Warren (Contact Author)

Australian National University (ANU) - Research School of Finance, Actuarial Studies and Statistics ( email )

CBE Building 26C
Kingsley Sreet, Acton
Canberra, ACT 0200
Australia

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