How much work is KiwiSaver for advisers?

Many advisers have said it is hard to make a living from KiwiSaver, and the amount of time spent on helping clients with the Government savings scheme was not reflected in the commission they would earn.

Advisers get, on average, a trail commission of a quarter of a per cent of the fund balance and an introduction fee of about $25. That means an adviser whose client had $10,000 in KiwiSaver would earn $25 a year from that client.

But Henry Tongue, of Generate, which deals with RFAs, said most people would not feel the need to talk to their adviser every year, especially if the communication from their provider was good.

“Some people, particularly those with large balances, will want to discuss their KiwiSaver more regularly perhaps as part of a wider asset portfolio review…Advisers can make KiwiSaver as big or small part of their business. The advisers we work with generally find their clients very receptive to taking KiwiSaver advice, especially when they find out that the advice they are going to receive could have a meaningfully positive impact on their retirement.”