According to a survey by the Financial Services Council (FSC), while 35 per cent of Kiwis would consider taking professional financial advice, only 18 per cent actually receive it, and 40 per cent don’t see any benefit of it.
Richard Klipin, CEO of the FSC, says the main barriers to people getting advice is a perceived lack of wealth, and the affordability of advice, adding that 65 per cent of those surveyed don’t think they have enough wealth or assets to warrant seeking financial advice. In addition, 62 per cent believe it’s too expensive.
The FSC’s third Money and You publication focuses on what is stopping people from getting financial advice, and why it’s important that more New Zealanders have access to it.
“We’ve also looked at the main triggers for getting advice, and it’s not surprising that major life events, particularly buying property (23.8 per cent), are the key motivators,” says Klipin.
“Kiwis are taking on increased levels of debt, so to have 75 per cent of respondents signal that buying a property wouldn’t trigger taking any external advice is a real area of concern.”
Klipin says the survey delivers a stark message to the financial services community about making sure that New Zealanders have access to advice.
“We need to do more to educate people about the long-lasting benefits of professional advice. This includes promoting the value of financial advice and literacy to all New Zealanders; right across the wealth spectrum and at all stages of life.”
Download the full report here.