tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Monday, July 15th, 11:55AM

News

rss
Latest Headlines

KiwiSaver 2.0 - Financial advice for all

The future of KiwiSaver could involve universal financial advice for all members but it's not without its pitfalls.

Friday, December 10th 2021, 6:32AM

by Matthew Martin

Adam Boyd

ASB Bank's Adam Boyd says holistic financial advice and offering incentives to save for retirement would benefit KiwiSaver members and increase the nation's financial literacy.

But he says access and affordability to financial advice are some of the barriers the scheme would need to overcome first.

Boyd made the comments during a Financial Services Council conference webinar this week when a panel of experts met to discuss the future of New Zealand's retirement savings scheme.

The panel rated KiwiSaver at an average of 6.5 out of 10 - fit for purpose, but could do better - with Boyd saying low participation rates could be improved.

"People who access advice get better returns...but good holistic advice takes time and is expensive. Even digital advice is not cheap.

"If fees go too low you won't get high-quality advice...and those who need it won't get it."

He says Kiwis find it hard to save and ideas like lower tax rates, matching contributions and advice being embedded into KiwiSaver products could be powerful levers when it comes to encouraging people to save more for their retirement.

Auckland University's Susan St John says free financial advice for those who need it would also help reduce the inherent biases of the scheme that works against women, casual and part-time workers.

"It delivers very well for the baby boomers...but it's not designed well for women who work less during 20 to 40 years of age."

St John says reinstating the $1,000 kick start government contribution could also help encourage people to save more.

Core Data chief executive Andrew Inwood says good service and low pricing don't go together well and there are good arguments for incentives as well as for compulsion.

"Financial advice is not an evenly distributed skill - there are bad advisers who are only in it for the money - so [members] could potentially be exploited."

Mint's David Boyle says contribution rates are still a concern and access to financial advice for those who need it is a good idea, as well as being in the right fund for individual circumstances.

"There will come a time when access to personalised advice will be important. I support better access to advice, but it has to be affordable and it is not affordable for everyone."

Boyle says there has been a lot of research done on KiwiSaver and it should be acted on, especially on why people are not saving as much as they should be.

"People need more support during tough financial times."

He says using KiwiSaver to build financial well-being and literacy could help stop people from accessing their emergency savings and toxic debt.

The Financial Markets Authority's Paul Gregory says people who get financial advice are better off all round and as the global investment scene changes KiwiSaver, fund managers and products need to change too.

He says directors, managers and investment teams need to look at adding more value for less cost, but that's a fine balancing act and there's also the issue of the "missing million" who are either not in the scheme or not contributing at all.

Tags: Adam Boyd Andrew Inwood David Boyle FSC incentives KiwiSaver Paul Gregory Susan St John

« Foundation Advice - proving the naysayers wrongTough times ahead for NZ economy: Nikko economist »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Weekly Wrap

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 6.19 - - -
AIA - Go Home Loans 8.74 7.14 6.75 6.39
ANZ 8.64 7.74 7.39 7.25
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.14 6.79 6.65
ASB Bank 8.64 7.14 6.75 6.39
ASB Better Homes Top Up - - - 1.00
Avanti Finance 9.15 - - -
Basecorp Finance 9.60 - - -
Bluestone 9.24 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Classic - 7.14 6.79 6.65
BNZ - Green Home Loan top-ups - - - 1.00
BNZ - Mortgage One 8.69 - - -
BNZ - Rapid Repay 8.69 - - -
BNZ - Std, FlyBuys 8.69 7.74 7.39 7.25
BNZ - TotalMoney 8.69 - - -
CFML Loans 9.45 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 6.79 - -
Co-operative Bank - Owner Occ 8.40 6.99 6.79 6.65
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 7.49 7.29 7.15
Credit Union Auckland 7.70 - - -
First Credit Union Special - 7.45 7.35 -
First Credit Union Standard 8.50 7.99 7.85 -
Heartland Bank - Online 7.99 6.89 6.55 6.35
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.60 7.40 -
HSBC Premier 8.59 - - -
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 7.85 7.05 6.69 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 7.74 7.35 6.99
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 7.99 7.79 7.55
Kiwibank - Offset 8.50 - - -
Kiwibank Special - 6.99 6.79 6.65
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 7.65 7.25 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 8.74 7.74 7.09 6.95
Lender Flt 1yr 2yr 3yr
SBS Bank Special - 7.14 6.49 6.35
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 6.14 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 7.79 7.55 7.45
TSB Special 8.64 6.99 6.75 6.65
Unity 8.64 6.99 6.79 -
Unity First Home Buyer special - 6.55 6.45 -
Wairarapa Building Society 8.60 6.95 6.85 -
Lender Flt 1yr 2yr 3yr
Westpac 8.64 ▼7.49 7.35 6.99
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - ▼6.89 6.75 6.39
Median 8.64 7.14 6.82 6.65

Last updated: 15 July 2024 11:47am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com