There are many paths to a comfortable retirement in New Zealand. Kiwisaver, PIE Funds, and term deposits all play their part in helping Kiwis generate wealth for their later years.
But which of these are working best for everyday New Zealanders? With the release of the Financial Markets Authority’s (FMA) consumer experience survey, we can glean greater insight into our investment habits on a national scale.
Nine in ten New Zealanders invest
The FMA and Colmar Brunton surveyed 1,000 New Zealanders on their investing, finding that that 899 have at least one kind of investment. By popularity, these were:
- Kiwisaver (67 per cent)
- Life insurance (37 per cent)
- Alternative superannuation (14 per cent)
- Managed funds or unit trusts (7 per cent)
- Portfolio managed by a professional investment adviser (5 per cent)
Further to this, nearly half of people surveyed (45.4 per cent) had more than one investment. Finding a diverse set of investments is the key to a balanced portfolio, managing risk and return no matter the wider economic circumstances.
For so many investors, success relies not on their own knowledge, but on the investment adviser they pick – something the FMA has also uncovered some affirming trends on.
The benefits of using advisers
A major part of the FMA survey was asking respondents about the level of communication they received about their investments.
For unit trusts and managed funds, NZ consumers felt strongly that they could:
- Understand the information about products brought to them (73 per cent agreement)
- Work with someone who knew a great deal about the investments (79 per cent agreement)
- Have fees and costs explained to them clearly (72 per cent agreement)
Finding the right adviser can be just as intelligent a step as finding the right fund.
On these three categories in particular, consumers felt more strongly about trusts and funds than they did other products – but each has its own strengths. Kiwisaver consumers were particularly satisfied with how fairly they were treated and their advisers’ knowledge, while those working with investment portfolios had the best consumer responses of all.
While the majority of New Zealanders have some form of investment, finding a professional adviser to help their wealth grow and add to it with new products is a step many are yet to take. Finding the right adviser can be just as intelligent a step as finding the right fund.
To find out about your options, speak to the investment experts at Milford.
Disclaimer: This article is intended to provide general information only. It does not take into account your investment needs or personal circumstances. It is not intended to be viewed as investment or financial advice. Should you require financial advice you should always speak to an Authorised Financial Adviser.