Lack of savings products contributed to finance sector collapse
Investment adviser Peter Hensley says the narrow range of savings products helped contribute to the "influx of funds into the non-bank sector" that ultimately led to the collapse of more than 50 finance companies.
"The investment advice industry needs to prepare itself for the pending retirement of the baby boomers," Hensley said in a discussion paper he wrote on retirement income streams. "Those advisers specialising in building cost effective diversified income biased portfolios realise that our limited investment market simply does not have enough suitable retail products to satisfy demand."
The country's ageing population has dominated headlines in recent weeks after former National Party leader and Reserve Bank Governor Don Brash raised the need for the country to address the cost of pension for the baby boomer generation.
The main challenges for both DIY investors and professional advisers are finding the right investment vehicles at the appropriate risk level, in the right quantity, Hensley said.
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