KiwiSaver
KiwiSaver and creating clients for life Rupert Carlyon, Founder and Managing Director, koura
Nearing Retirement
So, the markets are not pretty right now. To date, 2022 has been a hotbed of volatility and dip after dip, driving concern – understandably – amongst the KiwiSaver member population. And just as in March 2020 when the markets skipped a beat and we saw that short-lived Covid dip, this round of market volatility has highlighted once again that Kiwis need someone to call on, to thrash out their KiwiSaver concerns. Kiwis (in the main) just aren’t wellenough informed about how KiwiSaver (and inv1esting) works. They’ve enrolled in KiwiSaver, often through the bank, and then tend to put it in the ‘set-and-forget file’. That is, until markets goes south. And I say that not at a dig at the banks – it’s a simple case of supply and demand. There are three million KiwiSaver members, and currently, not enough human- intervention to go around.
Shifting the needle While we’re a long way from claiming that we have a mature- KiwiSaver investor base in New Zealand, the past two and bit years is changing that. During the Covid dip and again this year, the “stay calm, don’t crystalise losses, it’s about the long term” message has been getting some good air time and getting through – at least in part. And of course, the markets in 2022 have done a swift job of putting a good- sized dent in KiwiSaver-apathy (for now). 024
TMM 03 | 2022
KiwiSaver
Building Wealth
Divorce / Separation Starting a family
So what does this mean for mortgage and insurance advisers? It might feel contrary to instincts given the current market upheaval, but now, while KiwiSaver has the public’s attention, is the time to get involved and explore how KiwiSaver can play a valuable role in creating clients for life, for your advice business. There are options for advisers who don’t carry an Investment licence or Level 5 Investment qualification, the koura digital advice and facilitator model is of course one. But I’ll leave you to explore those on your own time. Here I’d like to focus on the role of KiwiSaver in creating clients for life, and how it can reinforce an adviser’s position as the go-to finance professional.
Creating clients for life You’d be hard pressed to find another financial product that has relevance throughout an entire lifetime, and that three million Kiwis are currently enrolled in. Starting work, getting married, buying a home, starting a family, building wealth, getting divorced, losing a partner, starting a business, nearing retirement, living retirement...the list of life stages and events goes on. And for each and every one of them, there is a KiwiSaver conversation that’s needed, and an opportunity to deepen your client relationship, and identify and assist with new mortgage and/or insurance needs. Here's a quick summary of just some of the life stages and events where KiwiSaver can open the opportunity for conversation (and more). It’s is by no means exhaustive – but rather some food for thought about the potential of KiwiSaver in your client relationships, and for building your advice business.
