Financial Services Complaints Chief Executive, Susan Taylor, has spoken out to advocate for the introduction of financial advice initiatives into the workplace.
If more employers provided the services of a financial adviser to their staff, akin to the way some already provide free gym membership, it could be beneficial to the employer as well as the consumer and financial services, says Taylor.
“Research shows that financially secure employees are more productive than those who have financial worries,” she said.
She noted the successful trial initiated by the Commission for Financial Capability where a number of large employers arranged for a financial adviser to visit their employees during work time.
“It’s important to think of new ways for New Zealanders to access good quality advice…”
“It’s important to think of new ways for New Zealanders to access good quality advice because the current ways show that not all New Zealanders are obtaining advice (ie are under or uninsured), nor do they understand the importance of good advice,” said Taylor, adding as people’s lives become busier than ever, having the option to access advice while at work could appeal to the modern day consumer’s pace of living.
As head of the FSCL, Taylor has experience in investigating and resolving complaints against financial service providers and advisers.
She said in general, New Zealanders’ level of financial capability and knowledge and understanding of financial products is low.
“We see many complaints where the consumer has not understood, let alone read, the insurance policy,” she noted.
Partners Life’s Naomi Ballantyne previously called for income protection initiatives within the workplace, (see: Tap Into Employment…) but Taylor said the whole suite of risk products could have a place there.
“I see no reason why that advice shouldn’t include all personal risk products, life, disability etc,” she said.
“What I am suggesting is that employers consider providing (paying for) an hour or two for an employee to meet with an adviser, as part of being a ‘good’ employer.”