Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Kiwis keen on robo-advisers but want people involved too

10 November 2016

Kiwis keen on robo-advisers but want people involved too, survey shows

Kiwis are open to the idea of a robo-adviser helping them manage their finances but still want real people available to help them with some decisions, a new survey commissioned by Kiwi Wealth shows.

The survey, ‘Rise of the Money Robots: Kiwis’ attitudes to robo-advice’, sheds light on Kiwis’ attitudes to robo-advice and explored whether they would consider taking advantage of it to help manage their financial futures and lift low engagement levels in retirement planning.

The Perceptive Research survey of 1001 people looked into Kiwis’ attitudes toward the use of robo-advice to automate the management of investment and retirement savings. Robo-advice has taken off overseas but is a relatively new concept in New Zealand.

While only 8% of respondents had heard of robo-advice for financial planning, one in five would consider using a robo-adviser to manage their retirement planning.

However, almost half of respondents said they would prefer a human financial adviser over a robo-adviser for professional opinions and views, or when there were changes in financial or personal circumstances.

“The survey findings clearly show that Kiwis see robo-advice as complementary to human financial advisers, rather than as a total replacement of experts,” said Joe Bishop, Head of Retail Wealth and Marketing at Kiwi Wealth.

“That reflects how new robo-advice is as a concept, and the lack of a proven track record for the technology here. However, that’s changing, and we expect things to only accelerate.”

In July, the Government signalled its intention to allow robo-advice as part of its review of the Financial Advisers Act 2008 (FAA).

“That’s a very important step,” said Mr Bishop. “The technology coming online now has advanced well beyond what was around when the FAA became law in 2010. If we’re to bridge the advice gap and get people involved in planning for retirement, particularly with KiwiSaver, robo-advice will be vital.”

Robo-advice would make financial advice available to more New Zealanders.

“There are 2.6 million of us enrolled in KiwiSaver but only around 1800 authorised financial advisers available to provide personalised advice,” said Mr Bishop.

“The human element will remain important in the advice mix, but robo-advice has the potential to democratise access to financial advice for all New Zealanders, particularly as KiwiSaver accounts grow and other investments play a role.

“The long-term well-being of the country requires us to manage our retirement investments well. New technology will make it easier for Kiwis to get the financial advice they need.”

Key findings from Kiwi Wealth’s ‘Rise of the Money Robots: Kiwis’ attitudes to robo-advice’ survey:

· Less than 20% of Kiwis currently have a financial adviser.
· A fifth of respondents (20%) indicated they haven’t checked their retirement finances in the past 12 months.
· Kiwis don’t check on their retirement investments more often due to a lack of knowledge (26%), not having time (22%), or feeling that retirement is too far away.
· Young Kiwis see robo-advice as an opportunity to get advice on setting financial goals; older Kiwis see robo-advice as a way of helping them to realise those goals.
· Access to human financial advisers is more important the older one gets, with older generations more hesitant to entrust robo-advisers to manage their retirement savings.
· Robo-advice should complement human financial advisers.

Kiwi Wealth’s digital retirement income planning tool uses a range of calculations and algorithms to allow members of its KiwiSaver Scheme to estimate the future worth of their KiwiSaver investment.

The tool uses a member’s current balance, contribution rates, projected returns and other economic factors to calculate an estimate lump sum and retirement income. It also calculates how changes to factors such as fund type and contribution level could affect the growth trajectory of their investment and members can make those changes, most at the click of a button.

Most recently, the tool now also incorporates the potential additional income provided by New Zealand Government Superannuation. The combined estimate is built into a simple “dashboard” giving members an even clearer picture of the income they may have available when they retire.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Westpac: Sets Out Plan To Go Cheque-Free

Westpac NZ has announced details of its plan to phase out cheques, after signalling in May that it would be supporting a move to other forms of payment. Cheques will cease to be available as a means of payment after 25 June 2021. Westpac NZ General ... More>>


NZTA: Major New Zealand Upgrade Programme Projects Go To Tender

Two major New Zealand Upgrade Programme projects are beginning tenders for construction. The New Zealand Upgrade Programme is a $6.8 billion investment to get our cities moving, to save lives and boost productivity in growth areas. The first Auckland ... More>>

Reserve Bank: RBNZ Seeks To Preserve Benefits Of Cash

The Reserve Bank – Te Pūtea Matua is taking on a new role of steward of the cash system “to preserve the benefits of cash for all who need them”, Assistant Governor Christian Hawkesby told the Royal Numismatics Society of New Zealand annual conference ... More>>


Economy: Double-Dip Recession Next Year, But Housing Rolls On

New Zealand's economy is expected to slip back into recession early next year as delayed job losses, falling consumer spending, and the absence of international tourists bites into growth. More>>


Microsoft New Zealand: Microsoft Expands “Highway To A Hundred Unicorns” Initiative To Support Startups In Asia Pacific

New Zealand, 14 October 2020 – Today Microsoft for Startups launches the Highway to a Hundred Unicorns initiative in Asia Pacific to strengthen the region’s startup ecosystem. This follows the initiative’s success in India, where 56 startups were ... More>>

Fonterra: Farmers Taking Another Step Towards New Zealand’s Low Emissions Food Production

They’re hot off the press and intended to help take the heat out of climate change. Fonterra farmers are already among the world’s most sustainable producers of milk and now have an additional tool in their sustainability toolbox. Over the last few ... More>>


Courts: Businessman Eric Watson Sentenced To A Four-Month Jail Term

New Zealand businessman Eric Watson has been sentenced to a four-month jail term in the UK for contempt of court, TVNZ reports. More>>

OECD: Area Employment Rate Falls By 4.0 Percentage Points, To 64.6% In Second Quarter Of 2020

The OECD area employment rate – the share of the working-age population with jobs – fell by 4.0 percentage points, to 64.6%, in the second quarter of 2020, its lowest level since the fourth quarter of 2010. Across the OECD area, 560 million persons ... More>>

Spark: Turns On 5G In Auckland And Offers A Glimpse Into The Future Of Smart Cities

Spark turned on 5G in downtown Auckland today and has partnered with Auckland Transport (AT) to showcase some of the latest in IoT (Internet of Things) technology and demonstrate what the future could look like for Auckland’s CBD with the power of 5G. 5G is ... More>>

Stats NZ: Monthly Migration Remains Low

Since the border closed in late-March 2020, net migration has averaged about 300 a month, Stats NZ said today. In the five months from April to August 2020, overall net migration was provisionally estimated at 1,700. This was made up of a net gain ... More>>

University of Canterbury: Proglacial Lakes Are Accelerating Glacier Ice Loss

Lake Tasman, New Zealand | 2016 | Photo: Dr Jenna Sutherland Meltwater lakes that form at glacier margins cause ice to recede much further and faster compared to glaciers that terminate on land, according to a new study. But the effects of these glacial ... More>>


Dairy: Fonterra Sells China Farms

Fonterra has agreed to sell its China farms for a total of $555 million (RMB 2.5 billion*1), after successfully developing the farms alongside local partners. Inner Mongolia Natural Dairy Co., Ltd, a subsidiary of China Youran Dairy Group Limited ... More>>