KiwiSaver

KiwiSaver is the future of financial advice: Bascand

More than a million people will be seeking advice on their KiwiSaver, Harbour Asset Management co-chief executive Andrew Bascand says.

Wednesday, June 18th 2025

More than a million people will be seeking advice on their KiwiSaver, Harbour Asset Management co-chief executive Andrew Bascand says.

Speaking at the recent launch of the Evidential KiwiSaver scheme, Bascand laid out his forecast for the growth of KiwiSaver.

“The all-consuming wave is well underway.”

“You can’t avoid that KiwiSaver is the future of financial advice in New Zealand.”

“Under the current KiwiSaver settings I think that KiwiSaver goes to just under $400 billion in 10 years’ time.”

(This speech was made before the Budget announcements).

Bascand’s model assumes members over 65 take money out of KiwiSaver, he has used an average contribution rate of 4.3% and salary and wage inflation at 3% annually. His market return is 4.25% after tax.

“I think in all respects my $400 billion here of KiwiSaver is slightly conservative.”

Under this model KiwiSaver goes from being $2 in every $10 of household wealth to $4 in every $10.

Bascand looks to Australia and how superannuation has grown.

One of the trends he expects New Zealand to follow is that an increasing amount of superannuation (KiwiSaver) will move to managed portfolios on platforms.

He reckons 50% of super in Australia sits on platforms and New Zealand is around 25%. New Zealand will grow, maybe not to the same level as Australia, but in his view it will increase.

More and more KiwiSaver members will start seeking advice making it a profitable sector to operate in.

Surveys show 25% of members have sought advice so far, however Bascand questions the data and whether it is true independent financial advice or just information from a provider to a member.

The key takeout is “people are thinking about (advice).”

Based on his $400 billion growth predictions and 25% of members seeking advice that means there will be $60 billion of funds which could come under advice

He notes Australia has been struggling with providing advice as its superannuation has grown. New Zealand will be no different.

“I actually don’t think there are enough advisers in New Zealand to do this today.”

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Comments

On Wednesday, June 18th 2025 5:09 pm John Milner said:

I agree with Andrew regarding many KiwiSaver advisers, merely repeating what’s on the packet and not providing actual advice. But to be fair, the KiwiSaver model is not designed for personalised advice. It’s all about scale with large volumes of clients. That’s why it’s incredibly attractive for banks and fund managers. This is the lens through fund managers see the market. Then create a mirage of advisers providing meaningful personalised advice for their clients. Although I work with a few KiwiSaver members, unless you cross sell services, it’s all risk with little reward. There is certainly a big push to promote KiwiSaver to advisers, but it will be for the benefit of the fund managers and not the adviser. Unless of course the adviser plays the fund managers game with scale, together with low to no advice. While addressing an event about a year ago, Andrew advised he had analysed the market and believed there was something like 1,000 well-heeled high earning KiwiSaver members in the market. For those advisers who wish to actually advise, may I suggest you start looking now and fast and forget about the $400 billion dream.

On Wednesday, June 25th 2025 11:13 am JPHale said:

I agree John, I think with the added challenge of AI we're going to see growth in deep specialisation of advisers and increased commoditisation of the simpler stuff. The old VIO approach, where some is better than none, that is waiting for a real adviser to come along. Where the bulk of people will be direct to institutions and their robo services until they need real help. The difference to days of old and the future is the price point for that advice is going to have significantly more pressure depth; skill, knowledge, relationships, and ultimately client value delivery.

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