Call for govt to subsidise financial advice

The research, reported yesterday on Good Returns, found fewer than one in five KiwiSaver members had used the services of a financial adviser, with many opting instead for advice from friends and family, books or the internet.

The results of the survey aren't much of a surprise but they show some of the flaws in KiwiSaver's design, according to Institute of Financial Advisers president Nigel Tate.

"The simple answer is yes," he said when asked if the findings were expected.  "However, the reason for it is more important than the fact it is occuring. It's due to the fact the government didn't infuse in KiwiSaver any requirement to get advice. 

"I've been saying this for a while: when they incorporated it they should have said, instead of giving you $1000 up front [government kick-start] we're going to give you $500 up front and $500 to pay for some advice.