22 Sep 2021

Steady rise in younger people seeking financial advice, industry group says

8:39 am on 22 September 2021

Growing KiwiSaver balances as well as a surge in the number of younger people using investment apps is driving up demand for financial advice.

New Zealand banknotes, pen and calculator on background with rising trend green line

Photo: 123RF

Financial Advice New Zealand chief executive Katrina Shanks said the industry was seeing a steady rise in the number of younger people interested in learning more about their finances.

She said the industry was typically dominated by older people, but that was changing.

"Young people are seeing financial advice and being a financial advisor as a career pathway, which is exciting, coming out of university in particular," she said, adding much of the interest was being generated by the increasing use of apps to access and manage investments.

"I think what we're seeing for the first time is young people engaging in their finances.

"They're seeing their [KiwiSaver] savings, they're seeing it build and seeing excitement of a vibrant financial sector, vibrant markets, and they are getting excited for the first time in a long time."

Shanks said the increased use of apps made people more aware of the need to increase their financial literacy and the importance of getting some financial advice.

"Not everybody understands how to read a market, how to read a balance sheet, and that's part of understanding investing."