Confusing investor behaviour

A recent survey of savings intentions shows a trend for New Zealanders to reduce their level of savings, while at the same time exhibiting an increasing desire for the Government to introduce some form of compulsory savings scheme.

Friday, June 25th 1999, 12:00AM

A recent survey of savings intentions shows a trend for New Zealanders to reduce their level of savings, while at the same time exhibiting an increasing desire for the Government to introduce some form of compulsory savings scheme.
In the SaverPulse survey the proportion of people who are saving for their retirement has fallen from 58 per cent to 54 per cent. Against this people are increasing acknowledging the Government isn't likely to provide an adequate retirement income.
It also shows that the call for a compulsory savings scheme is consistent and growing. Over the past quarter the percentage wanting such a scheme has risen from 57 per cent to 61. A year ago only 53 per cent of the survey's respondents favoured some form of compulsory savings scheme to ensure that people provided for themselves in retirement.

Investment Savings and Investment Association chief executive Vance Arkinstall says this is the seventh successive quarter that this statistic has increased. He says the result mirrors a similar response to surveys in Australia.
Other interesting findings to come out of the survey are that New Zealanders are showing an increasing interest in using the Internet to make investments with a well-known company.
Also, the number of people using the services of a financial planner or investment adviser are growing. In the current survey 24 per cent of respondents used an adviser (compared to 18 per cent four quarters ago) and a further 7 per cent are very likely to do so in the future.

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