A majority of New Zealanders under 55 lack confidence in their financial decisions
Relying on the advice of family members for financial decisions has contributed to the lack of confidence among New Zealanders when it comes to their finances, a new study by Fidelity Life found.
According to the “Advice for good: Rethinking New Zealand’s relationship with financial advice” report, more than half of respondents who were under the age of 35 found themselves in a constant state of worry regarding their finances, with more than a quarter admitting to feeling as if they have limited control over their financial situation.
While 88% of the respondents agreed that financial advisors were the most trustworthy source of information about finances, only 22% have consulted one, while 36% mostly sought advice from family members. Only 44% of men said they were confident about their finances, while the number was much smaller for women with only 28%.
“As a result of seeking amateur advice, we get stuck in the same old ways of doing things and can’t see a way forward – especially when the people we most often turn to for advice, our parents, have experienced different conditions,” said Campbell Mitchell, chief executive of Fidelity Life.
“Baby Boomers who have achieved financial success via the traditional route of buying a home and an investment property may consider themselves financially savvy without taking into account the fact they’ve lived through one of the greatest property booms in our history, and that as the world changes, a different approach might work better today,” Mitchell said.
“There is an opportunity for financial advisers to evolve their advice process towards an ongoing, coaching-style relationship with clients,” said Nick Hakes, chief executive of financial advice New Zealand.
Mitchell urged those within the financial advice sector to read the report and ponder about the possible contributions they can make to build more awareness about the importance of financial advice in helping people prevent mistakes in handling money and reduce their worries about their finances.
