KiwiSaver and the c-word
KiwiSaver compulsion won’t necessarily benefit advisers and even fund managers are divided as to its benefits.
“I don’t necessarily think it’s going to make any difference, certainly not in terms of the average adviser, because given there’s 1.8 million people already in there, the people who aren’t already in probably aren’t either earning a lot, aren’t interested, have opted out, chosen not to be part of it or don’t understand the message,” he said.
Lee said an increased savings pool – and a wider range of fund options and specialisations – could in the long term benefit advisers, but he saw no adviser advantage to compulsion in the short to medium term.
“Because the nature of the people who aren’t already in there are not exactly the target market of your typical adviser.”
Professional Advisers Association (PAA) chief executive Edward Richards agreed that measures to encourage KiwiSaver take-up were commendable, but that other options existed.
While both Lee and Edwards were unified in their view compulsion wouldn’t necessarily benefit advisers, two KiwiSaver fund managers KiwiSaver Good Returns spoke to had differing views on the issue.
Gareth Morgan Investments chief executive Cathy Magiannis said, “I not sure that we’ve actually gone through the pros and cons, I don’t think we’ve yet debated that process and come up with an overall view.”
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