Time for financial advisers to step up on KiwiSaver

New Zealand’s KiwiSaver market has probably reached the critical mass required to create opportunities for financial advisers to assist, the Financial Markets Authority’s chief executive says.

Wednesday, June 3rd 2020, 11:55AM 3 Comments

Rob Everett

It and the Commission for Financial Capability are launching a campaign to encourage KiwiSaver members to engage with their annual statements, which this year include an indication of how much income their KiwiSaver account could be expected to generate when they retired.

Rob Everett said the message to most New Zealanders was to start thinking about what sort of retirement they were on track to achieve and what they needed to do to change it if the income level was likely to be insufficient.

“I have always said there is an opportunity for financial advice around KiwiSaver – the question is of when is it at critical mass. But in terms of balances and people getting past 50, I think we must be there at this point.”

He said recent market movements might encourage more people to seek professional advice to work out whether their funds were working as they should.

Everett said advisers could expect to see the FMA reminding the market every year that annual statement time was a good opportunity to seek advice.

“Even if you only do it every now and again.”

He said the regulator wanted to make sure that even in a period of disruption “and a little bit of panic, everyone takes a step back to look at KiwiSaver as a long-term product”.

Financial Advice NZ chief executive Katrina Shanks welcomed the FMA and CFFC campaign and said it was good to periodically check KiwiSaver settings.

“KiwiSaver is just one of the vehicles used to save for retirement and this is a reminder for people to seek advice on other options.

“We know that for many New Zealanders, financial planning for the future can be daunting, and selecting a quality professional adviser can assist them to provide a comprehensive personalised plan to help them make the right decisions.

“Financial Advice NZ has also been advocating for the Government to provide assistance for people to obtain financial advice in the workplace. We believe that will improve financial literacy and increase people’s financial health, wealth and wellbeing.”

Tags: Commission for Financial Capability Financial Advice New Zealand FMA KiwiSaver Rob Everett

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Comments from our readers

On 4 June 2020 at 9:09 am Elephant1 said:
The major issue is the default fund managers and the banks
On 4 June 2020 at 9:39 am mike.lay said:
Perhaps the FMA could look at stopping banks recommending clients change their KiwiSavers to them, without advice.
On 4 June 2020 at 3:04 pm Clive.Fernandes said:
So something like this then?

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