It’s a great time for mortgage advisers as figures indicate that 73% of New Zealanders say they need to pay more attention to their financial future.
A recent ANZ
survey of 750 customers revealed that just over two-thirds of people indicating they are worried about their retirement and a high number are looking for information and ideas.
Wealth General Manager Products and Marketing Ana Marie Lockyer said the survey highlighted a significant challenge for the financial sector – how to deliver quality financial advice to the 2 million New Zealanders saving for their retirement.
“The survey found a large number of people were looking for their provider to offer ideas and information on KiwiSaver (34%), while a further 49% also wanted specific recommendations,” said Lockyer.
“Just 12% of people wanted a specific and personalised plan for their retirement savings - most people wanted information and ideas so they could go it alone initially.”
The survey also showed that free financial advice still favoured by New Zealanders with customers prepared to pay only up to $57 on average for a good value personalised financial plan but many expected advice to be free.
Lockyer said the main trigger for people wanting a personal financial plan was when they turned 65 but this was often too late: “People shouldn’t wait until they’re 65 to take charge of their finances – they need to take action earlier.
“Given it takes time to build a full picture of an individual’s personal circumstances, we need to find ways to get quality information and financial advice to customers, at a price they’re prepared to pay.”
Lockyer said 46% of customers indicated they would definitely use digital financial advice tools, particularly if they were free and 15% of people said they would definitely want a complete financial plan in the future – however, only 3% of people said they would want this if they were charged a fee.
“We’re all living longer and young people today may need their retirement savings to last for 30 years or more. Investing in quality financial advice might be the best investment you will ever make.”