Budget drives advisers to KiwiSaver, survey finds
The May Budget has spurred almost one-third of New Zealand’s financial planners into giving advice on KiwiSaver. according to a recent survey carried out by Good Returns and ASSET magazine.
Friday, June 15th 2007, 5:01AM
by David Chaplin
Prior to the Budget 73% of those surveyed said they were going to advise on KiwiSaver but the results suggest well over 90% of financial advisers would now actively participate in promoting the workplace savings schemes.
Over 40% of the respondents said KiwiSaver was an opportunity to secure new clients while 39% said it would help retain existing clients.
The majority of advisers would target employers (63%) with only 16% saying they would deliberately focus on employees for KiwiSaver advice. A further 21% were unsure of their KiwiSaver target market.
Despite the renewed enthusiasm amongst advisers for KiwiSaver a meagre 18% of them expected to make money directly out of advising on workplace savings schemes. Over 63% said KiwiSaver was unlikely to be profitable for them.
Of those who said they would make money from advising on KiwiSaver over half expected to turn a profit between two to five years with 11% optimistic of being in the black after one year.
Over a third of those surveyed said they would recommend between two to four KiwiSaver schemes while 11% would use five or more products. A large proportion (30%) were unsure how many KiwiSaver products they would use but 23% said they would stick with a single provider.
The five most popular KiwiSaver funds adviser would promote were: Fidelity, Asteron, Sovereign, Aon and Fisher Funds.
Further details from the survey are available in this month’s issue of ASSET magazine.
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