Just like in Australia, there are serious issues in the New Zealand financial sector. As independent financial advisers, we believe it is essential that we speak up on these issues that affect our community.
In July 2018, we led a group of independent Authorised Financial Advisers to write an open letter to the Financial Markets Authority and the Reserve Bank of New Zealand. We expressed deep concerns over the treatment of over 400,000 KiwiSaver default fund members. They had missed out on around $1 billion over the last six years, for various reasons. You can read our letter here.
Some 35 media outlets reported on the story, and John completed four radio interviews. The University of Auckland’s Retirement Policy and Research Centre came out in support of the issues (you can read their full media release here), quickly followed by the ANZ, New Zealand’s largest KiwiSaver provider, who in their press release said in relation to making sure that members funds weren’t left in conservative funds, “We support that 100%” (read their full media release here).
The will to change the default KiwiSaver scheme requires political support, and our letter has assisted to achieve an expanded objective in the default provider review in 2019 along with a review of KiwiSaver investment practices.
If you don’t know who your KiwiSaver provider is, it’s likely to be in a default fund.
Contact us today to review your KiwiSaver
During 2018, John and Rachelle have provided numerous financial literacy training sessions to first year electrical apprentices at ETCO, New Zealand’s leading provider of Electrical Apprenticeships, Training and Employment.
Many of the attendees have just left school and have very low levels of financial literacy. Attendees complete a budget and a statement of position. We talk about the importance of living within your means, not getting into debt, having smart EQ, how to differentiate themselves at work and how to make smart choices with their KiwiSaver. A common theme in attendee feedback is that the two-hour session is extremely worthwhile and unlike anything they have learnt at school.
If you are an employer…have you appointed a KiwiSaver preferred provider? Do your staff have access to a financial adviser who can provide personalised advice on their KiwiSaver? Don’t let your staff end up languishing in a default KiwiSaver fund.
The financial literacy of many young New Zealanders is too low and it needs to be addressed.
Contact us today to find out about our KiwiSaver in the Workplace programme