Govt should subsidise advice: Financial Advice NZ

Acting Retirement Commissioner Peter Cordtz this week released the latest three-yearly review of Retirement Income Policies by the Commission for Financial Capability.

Financial Advice New Zealand chief executive Katrina Shanks welcomed many of the recommendations made, particularly introducing a “small steps” contribution option to increase contributions over time, excluding fixed fees for low-balance accounts, making prescribed investor rates tax refundable, employer contributions for members over 65 and targeting the government contribution to incentivise voluntary contributions by non-employees.

But she said more should be done to encourage financial advice.

Shanks said the review had recognised there were many “levers to pull” for success – such as housing and employment. “You can’t just look at super in isolation.”